Blockchain technology offers faster, low-cost, secured payment services along with a distributed ledger that can provide trust among the participants. Although blockchain started out as the initial support platform for digital currencies, it’s now integrated into various industries, including payments.

In reality, our payment system is full of issues and needs a change right about now. In many cases, it can take days to process a transaction with extra fees and low security. This is the very reason that consumers are shying away from using payment methods to store or transact their money.

Also, a good portion of the population doesn’t even have access to proper banking and payment channels. Blockchain in this regard can really make a change. It can offer them the opportunity they deserve and also reduce all the issues of this sector to a significant extent.

So, in this guide, we will focus on blockchain’s role in the payment systems. Any novice who is curious about the implications of blockchain in the payment industry should use this guide to get more depth about the topic.

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Blockchain in Payment: Why We Need This Technology?

Many of you may be skeptical about using blockchain or any distributed technology in the payment sectors. However, the industry is full of issues and needs a reality check in the present times. Let’s see what are the major issues or this sector right now!

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Payment Frauds and Chargebacks

The increasing amount of payment thefts and frauds are quite alarming at the moment. In reality, due to the expansion of the e-commerce sector, the opportunity for misusing the information of consumers or card thefts are happening more aggressively.

Also, chargebacks are really costly, and it can single-handedly damage a business’s reputation. More so, the increasing number of chargebacks can even kill the business as well. The issues are, in many cases, the chargebacks don’t happen for a legitimate reason. So, the fraudulent activities pile up and make it hard for a business to bear in the long run. More so, the theft problems cause massive issues on the customer end, who then lose interest in the brand.

Delayed Cross-border Transactions

It takes a lot of time to process a cross-border payment nowadays. Even if you are not using a banking channel to process the transactions, it can still take up to 6 days to process that. In reality, this can affect the business world quite negatively. Enterprise has to transact money on a daily basis. Also, these transactions have a deadline to meet up. So, any delays in meeting these deadlines would result in massive losses. Therefore, this makes the business process quite inefficient. Also, on a daily basis, many people do send money from abroad to their families. However, when an emergency arises, there is no way for people to send the money immediately. Thus, it causes a lot of misfortunes as well.

Low Card Data Security

A merchant will need a Payment Card Industry Data Security Standards certification in order to accept any debit or credit cards. However, in many cases, merchants fail to comply with all the needs of this certification. In most cases, they tend to ignore the fact that card data security should have the highest priority. That’s why these channels have a very limited amount of security for the customer’s card information. This is something cybercriminals can easily exploit and use whenever they want. Therefore, without a proper security protocol in place, this type of data theft will keep happening.

Difficulty in Currency Conversion

International or global e-commerce needs to accept a variety of currencies and payment methods. More so, electronic payments such as debit/credit cards, mobile payments, or e-wallets need to offer currency conversions efficiently. However, in many cases, these services fail to offer support for certain native currencies, which limits a user’s ability to shop from anywhere.

Again, different payment providers offer different services that come with a lot of fees as well. Overall, the experience can be quite troublesome for both the merchant and the customers. The process of currency conversion isn’t properly streamlining, so that takes time as well. So, the merchant is unable to tap into a lot of potential for more business.

Lack of Proper Technical Integration

Another major issue of this sector is the lack of proper technology integration. What does it mean? Well, it means that even now, payment providers use legacy networks to operate their day-to-day activities. Unfortunately, these legacy networks can’t cope up with the increasing demand of customers and businesses.

Therefore, a lot of errors occur, and transactions or any payment services can take up to days to process. Not to mention the vulnerability of these technologies increase the risk of identity or money theft. However, these organizations are still reluctant to change or integrate new technologies.

High Processing Fees

Well, not every business sees the processing fees as a major issue. However, this is also one of the challenges of this industry. In reality, the processing fees always increase with every year, and in many cases, the variations of processing fees are quite complex. Therefore, it gets quite hard to keep track of the processing fees and how much they would cost in the long run.

Without understanding how these works, you may face issues in your business at an early stage. Also, for the consumers, these are quite unnecessary fees as, in certain cases, it can cost them a lot in the long run, specifically for international transactions.

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Complex Financial Regulation Across Territories

Every single country comes with its own set of regulations when it comes to financing or payment processes. However, every time a business expands to new territories, they have to deal with new kind of regulations. This means they have to start or change their business models for every new country. Therefore, the process becomes a lot complex and harder to keep track of.

But without following the guidelines properly, the companies may have to pay fines or even penalties based on the law they broke. This can be a tough situation for small to medium-sized businesses as it can hamper their brand value.

Low Customer Satisfaction

With the rising issues in the payment sector, the customer satisfaction level is dropping at a rapid rate. And why wouldn’t it? The increasing amount of money thefts, identity thefts, and slow services are making the consumers turn away from payment providers. For example, suppose a payment provider stops offering services due to a cyber-attack or discrepancies in their system. In that case, it’s the customer who will have to pay the price.

In this case, the customers who use the cards on a daily basis can’t access the money they have and would face a lot of trouble. It can also take a lot of time to resolve the issue; all of this time, all the consumers will have to look for another option to get their money back.

Increasing Cyber Attacks

The number of cyber-attacks on payment providers is alarming. Well, payment providers are their first target when it comes to cyberattacks. Cyberattacks alone can cost up to $6 trillion every single year in losses. Just imagine the amount of loss that happens from both consumer’s and companies’ ends.

As you already know that the companies don’t offer proper regulations or security protocols in place, it’s quite easy to hack into the system and steal the money or consumer data from it. Therefore, this sector needs a new technology that can help to battle all of the issues without any problems.

Repetitive KYC Procedures

The Know Your Customer or KYC procedures are there for a reason. We know that it’s here to safeguard the payment providers and the consumers from any identity-based issues. However, this process is not as easy as it sounds. In reality, it involves a lot of paperwork and needs a lot of official documentation to verify it.

However, suppose a customer decides to use another payment provider. In that case, he/she has to do the same process all over again. As there is no way for the banks to use the information from other banks to verify it, the consumer has to deal with the same process in a time-consuming way. In the long run, it’s a massive hassle for both the bank and the consumer.

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What Are the Benefits of Using Blockchain in Payment?

Now that you know about the issues of payment industries, it’s time to understand how blockchain can affect it in a positive way. Well, blockchain is still not perfect now, but it can still offer a lot of features for this industry.

First of all, blockchain can offer a more secured platform for transaction processes. In reality, using blockchain for payment processing can open up new opportunities for both the consumer and the company. The cryptographic hash function will ensure that no one can hack into the system and alter its data as they please.

So, blockchain can safeguard the network from both outside and inside attacks.

Again, the blockchain payment platform follows a distributed natured network. So, there is no central governing authority. This can actually be quite positive as the central governing authorities are full of corruption now. So, suppose the central authorities don’t have control over the systems. In that case, consumers can finally trust the system to offer the full security they deserve.

Transparency is another one of the benefits of blockchain in this industry. At present, this industry doesn’t offer any transparency in the system. So, customers don’t know how the companies are processing their money or how they are using it. However, blockchain can give customers their rights back.

Thus, using blockchain-based billing systems can actually pose a lot of benefits for companies and their customer base.

Blockchain comes with a lot of benefits for various industries. Check out our guide on the benefits of blockchain technology to learn more about it.

Use Cases of Blockchain in the Payment Sector

Blockchain in the payment sector can offer a lot of use cases. Let’s check out what these are –

• Digital Identity Verification

As you already know, identity verification is a lengthy process, and also it doesn’t offer 100% security. That’s why many consumers are skeptical about building or sharing their information for digital verification. Another major point is the time needed for every single verification. In reality, it does take a lot of time to verify every single document.

However, blockchain based payment methods can offer automated processes of identity verification.  More so, the overall process of verifying is accelerating compared to the traditional ones. Here, you can upload all your documents, and it will verify them and create a digital identity for you. Obviously, in this case, you will own your digital identity and will have to maintain it yourself.

Curious to know more about digital identity? Checkout detailed guide on Blockchain For Digital Identity

• High Data Security

Another great use case of blockchain for payment processing is the high security it offers for data. As you already know, merchants fail to comply with all the needs of this certification. In most cases, they tend to ignore the fact that card data security should have the highest priority.

That’s why these channels have a very limited amount of security for the customer’s card information. However, with a blockchain billing system, the scenario can change drastically. In reality, blockchain offers a secured network process where merchants can store the information of the customers, and no one will be able to access it.

This process can actually get rid of any kind of data security problems for good.

• Better Anti-Money Laundering (AML) Protocols

Due to the lack of Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) protocols, many banks or payment providers fall victim to these illegal activities. For example, HSBC bank had to pay a fine of $1.9 billion in 2012 for getting involved in a money-laundering scheme of the Colombian Norte del Valle cartel and Mexican Sinaloa cartel.

This type of scenario happens a lot, then we can think of. Just because the existing model isn’t capable of handling the situation doesn’t mean this should go on like this. However, blockchain for payment processing schemes can actually alter the scenario for good. Using a blockchain billing system will help honest banks to keep up with the compliances better. More so, they can easily detect any kind of illegal activities that may happen in the long run.

• Automated Know Your Customer (KYC) Processes

As you already know, the KYC process is not as easy as it sounds. Actually, it involves a lot of paperwork and needs a lot of official documentation to verify it. However, suppose a customer decides to use another payment provider. In that case, he/she has to do the same process all over again. As there is no way for the banks to use the information from other banks to verify it, the consumer has to deal with the same process in a repetitive manner.

But with blockchain based payment methods, a consumer will have to go through the process only once. After that, all of the processes will be automated. In reality, blockchain is a sharable but a secure type of ledger system. So, banks can communicate with each other and use the KYC data from one bank to another. Just think how much time and paperwork it will save!

Get familiar with the terms related to blockchain with Blockchain Basics Flashcards.

• Faster Cross-Border Transactions

Cross-border payment is an integral part of enterprise businesses. But it takes a lot of time to process a cross-border payment nowadays. Even if you are not using a banking channel to process the transactions, it can still take up to 6 days to process that. In reality, this can affect the business world quite negatively.

On the other hand, blockchain based payment methods can actually offer a faster transaction time. In fact, you can process a transaction within seconds instead of days! Can you imagine the implications of this feature? It can save so many times and would increase the efficiencies of so many businesses.

• Peer to Peer (P2P) Transfers

Another major use cases of blockchain payment platform are peer-to-peer transfers. In reality, using blockchain technology will help you transact directly with another user. You won’t have to go through a middleman or a central authority to do that.

Although P2P transfer applications are already in the market, they aren’t capable of offering you full freedom as they all come with some form of limitation. For example, they could only support a single geographic location or have a specific zone. But in a blockchain, there is no option for any limitations. You can transact money from anywhere around the globe.

• Reduced Processing Fees

Processing fees are a big issue when it comes to payment providers. In reality, the burden is for both consumers and businesses as well. In many cases, the processing fees always increase with every year, and in many cases, the variations of processing fees are quite complex. Therefore, it gets quite hard to keep track of the processing fees and how much they would cost in the long run.

But with blockchain based payment platform, there won’t be any need for a middleman. So, you won’t have to pay any processing fees for it as well. This significantly reduces the number of transaction fees for both the businesses and the consumers.

• Protection Against Cyber-crimes

Another major issue the payment sector deals with is the increasing rate of cyber crimes. This happens due to the companies not offering proper regulations or security protocols when in need. Thus, it becomes quite easy to hack into the system and steal money or consumer data from it.

However, with blockchain-based payment system, you won’t have to worry about cyber attacks ever again. Blockchain is perfectly suited to deal with any kind of cyber-attack. More so, there are even anti-DDoS attack applications based on blockchain that can help you fend off any DDoS attack. Can it get any better than that?

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Companies Using Blockchain Technology in Payment Sectors

• BBVA

BBVA is one of the payments companies that is using blockchain. More so, recently, they completed a syndicated loan with Red Electrica Corporation using this marvelous technology. The best part is that, according to them, the transaction process was so fast that it was a record speed in BBVA’s platform.

• Intesa Sanpaolo

Intesa Sanpaolo is also another one of the payments companies that are using blockchain technology for their applications. In reality, they are using this technology for validating trading data. Recently, other participants such as Eternity Wall and Deloitte started to test out the technology to see their benefits.

• Barclays

Barclays is U.K.’s 2^nd largest bank at the moment, and they are also in the blockchain ecosystem. At present, they are one of the prominent and active payments companies that are using blockchain for streamlining their KYC protocols and fund transfers. Also, they even have patents against these two features that they implemented in their platform.

• HSBC

HSBC is also using blockchain in the payments industry. In reality, the bank is already working on a multitude of projects that can facilitate their fund transfers and paperless documentation. So, their investors may track all of their money within the platform.

Also, recently, HSBC Bangladesh competed for the very first cross-border issuance of a letter of credit.

• Visa

Visa has been working on this technology for some time now. In reality, the company is also using blockchain in the payments industry for dealing with its business-to-business payment services. At present, the project is still alive and thriving.

Without a proper business model in mind, it’s difficult to use blockchain as leverage. Check out our ultimate blockchain implementation strategy to learn more about developing blockchain.

• Banco Santander

Banco Santander is using blockchain in the payments industry for streamlining their digital identity project. Along with other participants, the company is working on an automated digital identity system. More so, this project can give its user more control over their own data and how they want to use it.

• MasterCard

MasterCard is one of the payment processing companies that is using blockchain as well. They have a digital currency testing platform that may help the banks deal with CBDC (central bank digital currency) initiative. More so, this platform will demonstrate how the customer can use the currencies to pay in everyday life.

• PayPal

PayPal is another one of the payment processing companies that is using blockchain to gain more business efficiency. In reality, this company is offering the users to buy, sell, and even hold cryptocurrencies or digital tokens from their PayPal wallets. This will evidently open up new possibilities for the companies in the future.

• Citibank

Citibank is using a blockchain payment system to modernize the commodity trading processes. In reality, they will use blockchain to offer a better solution for commodity trading financing. This means they will streamline all the financial transactions or contracts in trading through their platform.

• ING Bank

ING Bank is also using a blockchain payment system in order to test out its privacy technology known as bulletproofs. This will hide the amount in any transactions using bitcoin. This will ensure that all of their client’s information is safe always, and there is no harm done to privacy.

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Conclusion

In the end, using blockchain in the payment industries can actually help get rid of a lot of the issues without any problems. You can better transaction processing, more security for your data, and ownership of your digital identity. We believe the implementation of blockchain can truly offer benefits for both businesses and customers.

If you are interested in implementing blockchain in your payment systems, then you need to start learning the technology more thoroughly. We recommend starting out with blockchain courses to master the core elements of blockchain before starting your very own project. So, why wait? Take the intuitive right now!

The post Blockchain in Payment: Accelerating Payment Services appeared first on 101 Blockchains.

As the technology is quite new and there aren’t many true paths to follow that can guarantee you land a job. Even now, people aren’t growing up hearing about the technology that can help them foster ambitions to further work on this tech or choose it as a valid career.

But still, the demand for skilled people is at an all-time high. Due to the multitude of applicability of blockchain, companies from various industries are looking to hire skilled personnel who can navigate this tech. However, not everyone is cut out to be a blockchain professional. You need to acquire a certain level of skills to make you stand out of the crowd and earn yourself an opportunity.

The good news is, whether you are a techie or not, blockchain can open up doors for you in enterprise companies. So, if you want to go for jobs in blockchain, then use our guide to learn about the skills and opportunities you need for the market.

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Path to Get A Job in Blockchain

Getting a job in the blockchain is not an easy task. If you have to work and practice a lot of skills to become a professional. However, with proper guidelines, you can learn to get a job in blockchain sector. Here is a list of the skills you will need to master in order to take the first steps towards your career.

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Learn About the Fundamentals and Basics

For entry-level blockchain jobs learning about the fundamentals of blockchain technology is a must. For novices, this is a crucial step, and you need to learn the ins and outs of the technology. More so, if you are interested in learning about the blockchain, then you should start your journey with the fundamentals.

In reality, you can start learning about how the technology can work along with its history and the different outcomes that come with it. You can also opt for possible use cases and so on.

More so, you can also check out the blockchain glossary to learn the proper definitions of certain attributes.

Learn the fundamentals of Blockchain through Blockchain Basics Flashcards

Develop Cross-discipline Broad Skills

Without cross-discipline skills, it’s quite hard to comprehend what your clients may want in the long run. This type of skill can also help you outshine other employees and become a favorite to your employer. We think it’s also quite effective to help you get a blockchain job and ace the interview.

So, make sure you start sharpening your cross-discipline broad skills. Therefore, skills like agility, adaptability, critical thinking, DevOps, predictions, analyzing, managing, and leading are integral parts.

If you can master these skills, you can surely hope to impress the interviewer and land the job of your dreams.

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Know-How Different Blockchain Platforms Work

This skill is important for both expert and entry-level blockchain jobs. In reality, to become a blockchain expert, you have to understand how different blockchain platforms work. Without understanding the mechanism behind every platform, you can’t possibly use them in your blockchain solution.

Even if you don’t directly work on the solution, still if you are part of a team that deals with blockchain, you have to know how they work. Also, in marketing or law enforcement, you can’t offer your value to others if you don’t know what you are dealing with from the start.

Learn to Couple Technology with Businesses

If you want to opt for a high-salaried job such as blockchain engineer jobs or development jobs, you have to learn how you can couple business models with technology. In reality, enterprise companies are only interested in blockchain as long as it can offer them a better version of the business model that increases revenue.

So, if you can’t couple these two elements, how can you increase the revenue of the company? In reality, it’s somewhat a tricky process and requires a bit of experience. It’s best to get started as an intern for that and get all the experience you need from that.

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Possess Knowledge of Various Distributed Ledgers

Well, in this world, blockchain is not the only distributed ledger at the moment. Yes, blockchain is decentralized, but it is one of the types of distributed ledger. So, when you are learning about blockchain, you should also start learning about other types of DLTs. In many cases, companies are more interested in distributed ledgers rather than only sticking with blockchain.

So, if your company or client demands a different approach, you can deliver it if you possess the knowledge of DLTs. In reality, this skill is more suited for technical positions such as developers, quality engineers, and so on.

Learn About Enterprise Business Processes

As you will work in an enterprise environment, it’s only common sense that you need to stay relevant to how they work. So, when you are applying for jobs in the blockchain field, opt to learn the way enterprises conduct businesses.

In reality, these skills are extremely important as it can define your output in a similar situation. If you don’t know how they work, how else can you work in a team or under a supervisor? So, start your journey by learning how procurement, logistics, distribution, or even treasury operations work. For a better outcome, you can read through case studies of big companies.

Master Various Programming Languages

This skill is more relevant for a technical position such as blockchain engineer jobs. In order to get a job in blockchain, you have to master programming languages. However, only mastering one or two won’t be enough here. In reality, blockchain is a complex technology, to begin with. So, it comprises lots of different algorithms that come from various programming languages.

Thus, start learning Python, Solidity, C++, Java, JavaScript, etc. These programming languages are most relevant to the blockchain at the moment. Also, make sure you practice hard enough to perfect your knowledgebase. Take your time, as this may take a while.

Study Front-End and Back-End Web Development

Obviously, this skill is more suited for developer jobs in the blockchain. In this case, you have to start learning how front-end and back-end web development work. If you want to opt for a bigger position, you have to study these as this is the primary requirement for most companies. So, understanding how APIs, UIs, data handling, and request handling work is a huge plus point for you.

But make sure to understand each of these with efficiency. In reality, these are critical information, so a slight mistake can end up costing your company and you. If you want, you can join a community to get pointers from other professionals.

Enroll in an Enterprise Blockchain Course

Enterprise blockchain courses can help you out in your learning process. As the technology is quite complex, it’s quite tough to comprehend it at the first glance on your own. So, when an expert teacher or instructor helps you understand and break down all the lessons in a digestible way, you can learn faster than normal.

Also, adding this completion of the course to your CV can help you showcase your knowledge on the topic to your first blockchain jobs.

There are already a lot of online courses available to help you out. But make sure you get your training from a reliable source to avoid any misinformation.

Start your blockchain journey Now with the Enterprise Blockchains Fundamentals

Understand Blockchain Architecture Ecosystems and Standards

Well, we think this is another important skill you need to master. If you want to become a blockchain architect, you have to understand how different architectural models of blockchain works. In reality, if you want to work with different blockchains, you have to understand how they work. So, when you are developing your very own solution, you can also make changes or create a new architectural model that works better or similar to blockchain.

I will recommend you check out the case studies of various ecosystems and standards to gain more knowledge on the topic. Also, you can try out the course to learn more about them.

Have an In-Depth Understanding of the Data Structures

Having an in-depth understanding of how blockchain data structures work will take you a long way. In reality, blockchain does not support every single type of data structure. So, you need to understand which are supported and which ones aren’t. So, once you know how they work, you can start using them for your own blockchain project.

I would suggest starting with Patricia Trees, Merkle Trees, and Merkle-Patricia trees at the very start. Also, try to master cryptography as it’s a crucial element to blockchain too.

Anyhow, let’s check out the next skill in this how to get a blockchain job guide.

Know-How to Communicate Value

It will all be in vain if you can’t relay your knowledge to your clients or team members properly. So, even if you can code or excel at the technical aspect, you can’t shine in the non-technical aspect at all. You need to know how you can relay your information to your respected colleagues and team members. Also, this skill will particularly help you in standing out in an interview session.

More so, if you are interested in non-technical positions, then you can use the communicative skill to better your chances of getting hired. Therefore, to get a blockchain job, you have to master this skill.

Learn to Use Various Development Tools

In reality, when you will work in an enterprise company, you will have a strict deadline that you have to maintain. But the issue is, the deadline can be overwhelming at times and may not be feasible using typical manual means. So, you have to start using development tools in order to save time and resources.

Typically, you should prepare for development tools related questions for you first blockchain jobs. At present, knowing how to use these is a must. So, make sure you know how to use these and how they work. More so, it’s also a great way to enrich your resume.

Get an Enterprise Blockchain Certification

At present, there aren’t any official degree or certification that institutions like colleges offer. So, to work in this field, you need to opt for getting a certification from a reputed source. In reality, all these certifications are online, and they hold great value to hiring companies.

If you get certified from these authoritative sources, then you can showcase your blockchain skills. It’s also proof that you know what you are doing, and you are capable of working on a blockchain solution.

Anyhow, these are all the skills you have to master for getting a job in the blockchain. Let’s check out what career options you will get from this field in this how-to get a blockchain job guide.

Job Opportunities in Blockchain

This list mainly consists of the top current job opportunities that you can go for. However, there are many other options for you out there. Anyway, let’s start!

• Blockchain Professional

The demand for blockchain professionals is all time high at the moment. Basically, they are experienced developers in the field of blockchain. In reality, there aren’t many professionals out there who come with the experience needed to work on a blockchain solution. Therefore, the demand is making the salary quite high.

For example, the blockchain job salary for this position ranges from $150k – $175k typically. But it can go up to $200k as well. The more experienced you are, the better. Practically, you will have to know programming. Other than that, you will need skills in Python, XCOD, MVC, SDL, C, SOAP, C++, AJAX, Solidity, and so on.

A survey from Hired can give a good perspective on the salary range based on geography. Check out the table below:

• Blockchain Consultant

Blockchain consultant is another lucrative position for you to try out. In reality, this position comes with a lot of demand and a high salary. But what will be your responsibilities here? Well, you will have to come up with strategies for your company to work on blockchain solutions.

This is extremely crucial that you analyze the market properly and come up with a road map that will surely be successful. More so, this type of job mainly falls under blockchain specialist jobs. We would say you have to be proficient in blockchain to understand the mechanisms and develop the perfect plan.

Also, the salary range for consultants is between $69k-$179k.

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• Blockchain Architect

Another great blockchain job position with a good salary range. In reality, blockchain architects will mainly work on the infrastructure of the technology. So, you will have to know about all the technical aspects of blockchain. Also, just knowing about them won’t help you land a job here. You have to become an expert in infrastructure design.

Typically, this type of position’s salary range starts from $31k and can go up to $140k. However, it will all depend on the company and how much they are willing to pay up for this type of work.

• Blockchain Project Manager

If you want to get a  job as a blockchain project manager, you have to work a lot on your soft skills. In reality, you have to master great communicative skills along with analytical and critical thinking abilities. More so, the best part is that you can become a leader here. So, you will have to work with a team and provide assistance to them in order to get the project done.

The salary range for this type of position is $38k-$111k.

• Blockchain Engineer

This is another great option available for you to check out. In reality, this is another lucrative job opportunity right after blockchain professionals. The issue is your responsibilities may vary from company to company in this position. In some cases, you will have to take on the role of the developer; in other cases, you may have to work on the architecture of the project. So, make sure you understand how Corda, Hyperledger, or Ethereum works.

The salary for this blockchain job is between $104k-$186k every year!

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• Blockchain Marketing Specialist

This is more of the non-technical positions in the field of blockchain. However, this job can secure you a wonderful payday as well. Also, the responsibilities of this job will surely attract you the most if you don’t like technical elements.

But you have to understand how the technology work, even if you don’t have to take part in the development stage. Therefore, once you know what your company is rolling out, you can start attracting consumers based on that.

Anyway, this type of blockchain specialist jobs can earn you $34k-$72k every year!

• Blockchain Quality Engineer

If you want to get a blockchain job, then you can go for quality engineers as well. In reality, quality engineers have to work under a blockchain engineer and even take on the roles of an engineer. Here, you will have to check out if the developer or engineers are going on the right track or did, they make any mistakes in their work.

This is a very critical job that can pay from $51k- to $94k every year.

• Blockchain Legal Consultant

Blockchain legal consultants have a very important role in the blockchain ecosystem. In reality, most of the blockchain projects don’t go with the typical laws or regulations of every country. So, it’s up to the lawyer to make sure that the company does not include any element or do any project that goes against the regulations.

The salary range for this type of position is $23k-$176k.

• Blockchain Data Scientist

Another high paying position is the data scientist. We know this may sound a bit odd as blockchain is self-sustaining. But from time to time, it does need maintenance. More so, as many other technologies are starting to include this ledge system, they need a skilled person who can analyze the data and figure out any inconsistencies.

So, you can get this blockchain job if you have high analytical skills and love to deal with data. You can expect a salary starting at $65k. But it can go up to $154k as well.

• Blockchain Security Expert

Another great option for you to check out is the blockchain security expert position. If you want to get a blockchain job and love to work in the security aspect, this is the best fit for you. Here, you will have to maintain security throughout your project. More so, you need to ensure that your code can offer 100% security and get rid of any kind of loopholes that cybercriminals can use.  So, you need to have a vast knowledge base of blockchain security aspects.

Here, you can get a salary starting from $49k, and that can go up to $178k!

Why Should You Go for A Job in Blockchain?

If you are thinking blockchain is a good career, the points below will clear all your doubts. Let’s check out the top reasons to choose blockchain as a career and get a blockchain job.

• Lucrative Salary Range

Almost all blockchain jobs can help you get a good salary every year. In reality, if you do get a blockchain job, you can earn up to $200k per year! That’s a massive amount of money that can offer security to you in the future. Although for the inexperienced the starting sum is lower but as you build up experience you can expect more and more.

•  Greater Hire Rate

Another reason to get a job in blockchain is the hire rate. In reality, many traditional fields have become saturated with a limited amount of companies hiring every year. But blockchain is a new technology, so the demand is still high, and it will stay like this for a long amount of time. So, if you can showcase your skills, then you can get a job in big companies with a lucrative status.

•  Less Competition

Even though the market is huge, it’s still growing. Even now, many people don’t even know what blockchain technology is or how it works. So, the ratio of skilled people, in this case, is quite low. Therefore, you will face less competition in getting a job. We think this is a good reason to get a blockchain job, as it will you less effort to do it.

• Global Revolution

If you love technology, then why not get a job in blockchain? This is the start of a new era, and why won’t you enjoy it to the fullest? Just think about it! You get to work on a global revolution that will change the world in so many ways. More so, with your skills, you’ll probably be responsible for a lot of change yourself.

• Exclusive Job Positions

As you already know by now, the job positions are all exclusive and brand new. So, when you get a blockchain job, you can expect the highest amount of benefits too. In many cases, the companies are willing to accommodate you as you please. So, you may not even have to work the usual 9-5 shift.

• Enterprise Environment

We think this is the best experience for you if you get a blockchain job. In almost all cases, you get to work in an enterprise environment. In reality, many enterprise companies are seeking talents who can help them realize the importance of blockchain and help them utilize the features. So, it’s a great experience to get a career in this sector.

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Ending Note

We’ve reached the ending point of our “How to get a job in blockchain” guide. Now that you know the skills you need to secure a blockchain job, you can start your training process. Blockchain technology is a great field to get started in your career. The technology is blooming and in the early phase of adoption. So, this is the perfect time for you to opt for a job in this field.

*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!

The post How To Get A Blockchain Job? appeared first on 101 Blockchains.

Blockchain being completely a new system does have a unique way to offer decentralization. That’s why in this guide of how does blockchain work will cover everything related to it. So, just grab a cup of coffee and let the reading begin!

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How Does Blockchain Work Simply Explained

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Well, let’s start off with the basics. Before you jump into the process, you need to take note of these critical features of blockchain.

Blockchain will store any kind of data exchange on the platform. So, it’s like a ledger system, where every data exchange has a spot in the log. More so, the data exchanges in the system are called transactions. Once the transaction is verified, it gets a place in the ledger system as a block.

Once it gets on the ledger, no one can delete or alter it in any way.

In reality, blockchain uses a peer-to-peer distributed network, which will ensure the decentralized nature of the technology. Every device that connects to the network is considered a node. Also, to understand “how does blockchain work,” you need to understand the concept of “key.”

This is the basis of technology. Furthermore, the keys offer security on the network. For this, a user on the network will generate key pairs known as private and public keys.

Once you start using the keys, you end up with a unique credential that no one can get access to.

Anyhow, you’ll have to store the private key in a secure place because you’ll use this key to sign or perform any action on the network. On the other hand, other users will use your public key to find you on the system.

For example, imagine your public key as your bank account and private key as your signature that you can use to send or withdraw money. That’s why it’s necessary for you to keep the key as safe as possible.

In reality, if anyone gets access to your private key, they can easily misuse all your assets on the network.

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How Does Blockchain Work: The Process

Firstly, a user or a node will initiate a transaction signing it with its private key. Basically, the private key will generate a unique digital signature and make sure that no one can alter it. In reality, if anyone tries to modify the transaction information, the digital signature will change drastically, and no one will be able to verify it. Therefore, it will be dismissed.

After that, the transaction will get broadcasted to the verifying nodes. Basically, here, the blockchain platform can use different methods to verify whether the transaction is valid or not. There methods or algorithms are called consensus algorithm.

Anyhow, once the nodes verify that the transaction is authentic, it will get a place in the ledger. Also, it will contain a timestamp and a unique ID to secure it further from any alteration.

The block will then link up to the previous block, and then a new block will form a link with this block and so on. And this way, it creates a chain of blocks, thus the name blockchain.

How Secure Is The Technology?

Now, you know how does blockchain work, but is the working process secure enough to integrate into the enterprise environment? Well, there’s definitely no network on the internet that’s ‘unhackable.’ But blockchain does offer the highest level of security compared to any other technologies out there.

Blockchain works in a different method, not like the traditional centralized system. So, if you want to hack it, you would have to hack all the devices connected to it. Obviously, it’s a loss project and quite complicated, and that’s why it’s secured.

In reality, hackers would need a tremendous amount of resources to hack a blockchain platform, which will eventually be more costly than the gain itself.

Let’s move on to the next part in this how does blockchain work guide.

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How Does Blockchain Consensus Work

You already know by now that consensus is a method of reaching an agreement. Basically, it’s a form of how individuals on the network can reach a resolution even though minorities may not like it.

In reality, the consensus is one of the core priorities of a blockchain because, without it, thousands of nodes can never come to an agreement. These models exist to create fairness and equality among all the participants.

However, there’s no one way to reach a consensus within a system. In reality, there are lots of algorithms that various blockchain platforms use. Obviously, every single one of them works differently and comes with its own set of flaws.

So, if you are wondering how does blockchain consensus work, you have to know about each one of them separately to understand.

Proof of Work

It’s one of the popular and first consensus algorithms introduced in the blockchain. Here, nodes are called miners, and they will solve complex mathematical issues with help from their device’s computational power to verify the blocks.

Delayed Proof of Work

Here, some notary nodes will add up data from one blockchain platform to another and secure the power of hashing. Both of the blockchain networks may use PoS or PoW to reach consensus.

Proof of Stake

Proof of stake allows you to take part in the consensus in terms of how much coins you staked in the network. If you have more coins, your possibility of mining a block will increase.

Delegated Proof of Stake

In this one, there’s a concept of delegates and witnesses. Each node is chosen using voting. Witnesses on the platform are responsible for validating the transactions. On the other hand, delegates can change the parameters of the system. Anyhow, all the nodes taking part in consensus will get paid.

Leased Proof of Stake

In leased proof of stake, the smallholders can take part in consensus. As the previous PoS won’t let them stake their coins in the network, it creates an unfair environment. That’s why LPoS offers more fairground.

Proof of Stake Velocity

Proof of stake velocity offers an extra incentive to keep the users from staking into the network. Here, you can earn more if you maintain an active wallet. This means the users who aren’t active quite often won’t get the extra payment for validating a block.

Proof of Elapsed Time

All the nodes have to wait for a certain amount of time before they can participate in consensus. The time limit is chosen randomly. Thus, you can only create a block when you finish the wait time. There’s no way to bypass it, as the system tracks if the node waited or not.

Practical Byzantine Fault Tolerance

Practical Byzantine Fault Tolerance gets rid of the compromised node issue. So, before any node can harm the network, it assumes the possibility of failure. In reality, the system gets information from other nodes as soon as a node is compromised to dismiss that node.

Simplified Byzantine Fault Tolerance

Here, the transactions are validated in a batch. More so, the block generator collects all the transactions and groups them accordingly and then gets them into one block. A validator then has to validate the whole block to verify the transactions.

Delegated Byzantine Fault Tolerance

Here, the leader of the nodes is called a delegate, and it has limited power. If the leader tries to manipulate the network, another delegate will replace that node. More so, other nodes can disagree with the delegate and can change their leader accordingly.

Federated Byzantine Agreement

Here, all the general nodes get their own separate blockchain to run. And before any node can request for a transaction, that node needs to be verified and known from the start.  Also, here, a node can choose who to trust on the network.

Proof of Activity

It’s a combination of PoW and PoS. Here, the miners pre-mine a block template rather than a complete one. Later, a validator validates the remaining block. In reality, the more stake a validator has in the network, the more valid his/her validation would be.

Proof of Authority

Here, the nodes participating in consensus will stake their reputation. Basically, the validating nodes are selected based on their true identities. Additionally, the validators have to invest money and their reputation to earn their place on the platform.

Proof of Reputation

It’s quite similar to Proof of Authority; however, a validator needs to have a good reputation to participate in the consensus. More so, if they try to cheat the network, they would face severe consequences.

Proof of History

Here, the system creates significant events on the network. A node then can validate the transaction based on whether the transaction happened before or after that event.

Proof of Importance

Here, the blockchain work keeping a score of the importance. The more coins a user has, the higher his/her score will be. Once they are eligible for participating, they can harvest a block. Additionally, if you harvest more, your importance score will increase.

Proof of Capacity

Users would use their available hard drive capacity to select mining rights instead of using computational power. So, the larger your hard drive would be, the more you can validate blocks.

Proof of Burn

Here, the blockchain works by burning coins to keep the network stable. So, the users would send some of their coins to an eater address and burn them so that they can participate in consensus.

Proof of Weight

Instead of only relying on how many coins you staked, the system stakes into other factors into account to weigh in. So, even if you have fewer coins, you may still get to participate in consensus.

Now you know how does blockchain consensus work. Let’s move on to the next phase in this how does blockchain work guide.

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Can Blockchain Work Without Cryptocurrency?

Blockchain is associated with cryptocurrencies form the very start. That’s why many of you might think that blockchain can’t work without cryptocurrency. But blockchain can work without cryptocurrency.

In fact, there are already many platforms that don’t have any native tokens or coins. A lot of blockchain projects are now moving towards token or crypto less ecosystem. For example, Hyperledger is an enterprise blockchain platform that doesn’t have any native tokens to fuel the network.

The token actually varies significantly based on how blockchain works.

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Cryptocurrencies Are Predicted To Fail

Cryptocurrencies are mostly suited for public platforms as they need some form of an incentive program to keep the users taking part in consensus. However, when it comes to enterprise platforms, they go with mostly permissioned or private ones.

As a result, they don’t need a coin or token to encourage nodes to participate in consensus. More so, cryptocurrencies are actually quite unstable for the economy. In reality, a volatile asset isn’t suited for real-life use cases.

Also, having a token in the system attracts hackers, as well. That’s why experts are predicting that cryptocurrencies will soon fail. So, it’s quite logical to move on to blockchain that can work without cryptocurrency.

Governments or other sectors are interested in taking advantage of the underlying use case of the technology, not a token-based architecture. Maybe cryptocurrencies can emerge in the future when the world is ready for the digital money system.

But at present, it doesn’t seem like a possibility. And so, for your blockchain implementation, you should also focus on a blockchain that can work without cryptocurrency.

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How Does Blockchain App Work

With distributed ledger technology rising in the market, you must have noticed a lot of decentralized applications, as well. Basically, these decentralized applications are blockchain apps. However, you might wonder how does blockchain app work?

So, how does blockchain app work? In reality, these applications run on the same principles as any other blockchain platform.

These practically have no central point of failure. If you compare them to centralized systems, then blockchain does work in a more reliable way. More so, it will use a decentralized database to store all the information and use decentralized computing power to work.

Additionally, these also use decentralized consensus mechanisms that I outlined in the previous section. Typically, most of the applications use a power-efficient consensus mechanism to reach agreement among the users. A dApp that lags down your computer’s performance won’t reach popularity in the market.

Another fascinating fact about the blockchain app is that the source code of these applications is open for all. The decentralized nature of the model required everyone on the network to get access to it. Also, the user has to verify what kind of app they are using to prevent any malware or protect other users’ information.

Most of the blockchain app work by using some form of token or coin. Basically, it helps to fuel the model and maintain their consensus mechanism. Also, most of the apps offer users a way to exchange value, and thus, digital token or coins are necessary.

Anyhow, let’s move on to the next part in this how does blockchain work guide.

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How Does Blockchain Authentication Work

You can use blockchain-based authentication in a lot of industries. In reality, any industry that uses the Internet of things (IoT) will need some form of authentication to offer security.

And that’s where the blockchain-based authentication can shine.

In reality, the feature does offer a lot of advantages –

• Both the decryption and signing keys will stay on the device.
• Encryption and verification keys will get stored on the blockchain platform.
• The process offers protection against any kind of cyber-attacks such as replay, man-in-the-middle, phishing, etc.

However, how does blockchain authentication work seems to a popular question among the newbies. So, let’s figure out how does blockchain authentication work in this guide.

Onboarding A New User

Here, a user can be anyone from an individual to a company or a device. To get the user into the system for the first time, the user would need his/her name, IMEI number, CIN, IP address, account number, etc. The requirements can vary depending on the platform or the company.

Additionally, the user also needs to submit a description of himself /herself.

In return, the blockchain will give them –

• Blockchain Address
• A private key
• A public key
• Relevant transaction ID
• RSA public key
• RSA private key

Among these, some will automatically get published on the network –

• User’s identification
• User’s description
• The public key
• Blockchain address
• RSA public key

However, the newly created private key and RSA private key will not get published.

Authentication Process

While onboarding a new user, the system generates a lot of keys and addresses to help identify the user later on. Now that you know about those let’s see how does blockchain authentication work.

A node requests for authentication, and a verifier node verifies whether the requester is authenticated to join the network or not. For example, here, the requesting node is John, and the verifier node is x company.

• Step-1:

John retrieves the RSA public key of the x company using the company’s blockchain address as the parameter.

• Step-2:

Next, John encrypts his blockchain address with the RSA public key and sends it to the x company.

• Step-3:

The x company will use its RSA private key along with the encrypted file to decrypt the blockchain address.

• Step-4:

Next, the x company uses the blockchain address as a parameter and retrieves John’s RSA public key.

• Step-5:

The x company then generates a 512-character random string and hash and current timestamp and encrypts it with John’s RSA public key. In the meantime, the hash and current timestamp are stored in the company’s ledger system.

• Step-6:

The x company then sends the encrypted hash to John.

• Step-7:

John uses his own RSA private key to decrypt the hash. For this, he uses the encrypted data along with the RSA key as parameters. Later, he uses his private key to sign the hash and get a unique digital signature as the output.

• Step-8:

Next, John encrypts an envelope containing the digital signature, the signed hash, and the blockchain address and sends it to the x company.

• Step-9:

The x company then decrypts it with its RSA private key and verifies whether the signature is valid or not. For this, the company uses John’s blockchain address, the signature, and the data to be verified.

• Step-10:

If the signature is valid, the output will be true, or else an error message will occur. Once the signature verifies, John is permitted to enter the network.

Let’s move on to the next part in this how does blockchain work simply explained guide.

Blockchain Working in Various Sectors

Blockchain can work in various sectors such as healthcare, supply chain management, government, trade, financial institutions, real estate, insurance, and many more. The healthcare industry can highly benefit from this integration.

But you must be wondering how does blockchain work in healthcare anyway? Well, blockchain can work in healthcare very efficiently, offering a great deal of patient security. More so, it can deal with counterfeit drugs, patient privacy, and many more when the blockchain will work in healthcare.

On the other hand, supply chain management or trading will get seamless real-time tracking of products, quality checks, and source authentication process.

Governments or financial institutions need more than public (Ethereum) blockchains. They need a permissioned access (Hyperledger, EEA, and Corda) where the system would be decentralized but also ensure the privacy of sensitive information.

These are a few examples of how blockchain can work in different sectors.

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Ending Note

Blockchain is here to stay, and most importantly, many enterprises are already pursuing the technology in their own way. According to Gartner, blockchain is going to be $3.1 trillion marketplaces by the year 2030.

But what do all these mean? It means that most of the companies will have their own blockchain solution, and the business model change drastically in the upcoming years. In reality, it will surely affect your business as well, and there’s no way you can just skip integrating the technology and still prevail in the market.

So, it’s high time you learned how blockchain works and how you can implement it into your system. Blockchain training courses can help in this regard. The great news is, our certified enterprise blockchain professional course offers everything you need to start your very first blockchain implementation.

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Bitcoin and blockchain have a huge role in changing the way we visualize and use technology to our advantage. Over the course of time, blockchain technology has turned into a promising foundation for enterprise applications across different industries. Industries are using blockchain for tracking supply chain and logistics management, while some countries have adopted blockchain for identity mechanisms. 

Wasn’t blockchain meant to develop cryptocurrencies only? No, blockchain has many more functionalities, and decentralized application helps in expanding the uses of blockchain. With the global blockchain market slated to achieve the $69 billion mark by 2027, it is quite reasonable to think about decentralized apps or dApps. The following discussion helps you understand what a dApp is alongside an in-depth overview of how it works. You can also discover the pros and cons of dApps alongside examples of popular decentralized apps in the following discussion. 

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What is dApp?

The arrival of Bitcoin almost a decade ago spurred a new age in the development of blockchain protocols. Developers have been trying to refine and add some exciting new functionalities in blockchain protocols tailored for various use cases. Today, you can find a wide range of applications of blockchain in finance, gaming, web browsing, and even for collecting art. 

How is it possible to implement blockchain in so many different use cases? The answer would directly lead you to the dApp blockchain relationship. Decentralized applications or dApps are basically similar to traditional software programs, which run on blockchain networks rather than central servers. If you look for a technical answer for “what is dApp”, then it is basically an application developed over a decentralized network. The dApps are never under the management or ownership of a third-party authority, thereby ensuring decentralization. 

Before diving deeper into the components and working of a decentralized application, let us reflect on the popularity of dApps. As compared to the 25 dApps in 2015, we have more than 3600 dApps spanning different areas such as games, decentralized finance services, social media platforms, and many more. Furthermore, decentralized apps are responsible for almost $182.5 billion worth of user transactions annually. Therefore, one could clearly note that dApp is a significant topic in the world of blockchain. 

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Working of dApps

As we are discussing the dApp blockchain connection, it is important to dig deeper into the design of dApps. Decentralized applications include a frontend and a backend as the two important components in their design. The frontend helps in communicating with the user, while the backend code is basically a smart contract. Now, the smart contract is where blockchain jumps in the answers for ‘what is dApp’ and most prominently refers to the Ethereum blockchain. 

The front end of the decentralized application is actually the code executed on the user side of an application. It basically serves as the interface for communication between the user and the application. In addition, the frontend of dApps also includes a digital wallet that serves different functions. 

The digital wallet maintains a record of private and public keys of users for authentication purposes. In addition, the digital wallet helps in interacting with blockchain for management of blockchain addresses and cryptographic keys. The digital wallet in the dApp frontend also helps in triggering the execution of backend or smart contracts. 

The backend of decentralized applications brings an interesting twist with the use of smart contracts running on the server-side of the application. You have the backend of dApps on a blockchain where it is executed, and the backend of dApps is open source in nature. The smart contracts perform the specifically defined functions irrespective of the conditions in their surroundings. 

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Differences between Decentralized Apps and Traditional Apps

Twitter and Slack are some of the conventional examples of companies offering web applications. Traditional web applications also depend on the frontend and backend as the important elements in their functionality. However, traditional web applications leverage software that resides on centralized web servers rather than the local operating system of specific devices. The devices would leverage the Hypertext Transfer Protocol or HTTP for using coding messages to communicate with servers. So, the feed on the front end of the web application would come from data in the backend or web server of the company. 

A decentralized app uses a smart contract on a blockchain network as its backend. Blockchain is basically a network of multiple machines sharing the same transactional burden in a distributed network. You can find that a dApp leverages the same technology for rendering the page on the frontend. However, dApps differ from web applications in terms of their backend as they communicate with relevant blockchain networks by leveraging a wallet. 

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Significance of Wallets in Decentralized Applications

Suppose you are trying to find out answers to “What is dApp used for?” then you should take a look at how wallets serve as an important component in dApps. The wallets help in managing a user’s blockchain address alongside the cryptographic keys required for their identification and authentication. 

Rather than depending on HTTP protocols, the wallets are responsible for triggering smart contracts or the backend of dApps. The smart contracts would then interact with blockchain network and ensure the execution of transactions. Since smart contracts are programmable code that you can tailor according to specific use cases, the dApps can work for a wide range of use cases. 

Key Features of Decentralized Applications

Another key highlight that you should discover in discussions around ‘what is dApp’ is an outline of the key traits of dApps. Now, you have a clear impression of the basics of decentralized apps and how they work. So, this would be the best time to take a look at the following features of dApps which distinguish them profoundly. 

• Open Source

One of the foremost highlights of a decentralized application is that it must be open source in nature. You could not have one single entity in control of the application’s code. On the other hand, the code of the application should be completely autonomous and readily available for assessment. 

• Incentives

The next critical highlight of a dApp would point towards the requirement for generating tokens. Decentralized apps must have the capability for generating native tokens as proof of value alongside distributing the tokens as rewards. 

• Decentralization 

As the name clearly implies, decentralized applications differ from traditional applications in the fact that their backend runs on a decentralized blockchain. The dApp blockchain association implies the need for storing all operational records of the app on a blockchain. 

• Protocol Compliance

All the stakeholders in a decentralized application should express their agreement for a cryptographic algorithm to verify proof of value. 

Advantages of Decentralized Apps

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The primary understanding of ‘what is dApp’ led to some promising insights about their definition, design, and functionality. Decentralized applications are basically traditional web applications which you would run on a blockchain network. So, what does a dApp offer in terms of value for users? Here are some notable advantages you can find with decentralized applications. 

• No Downtime

The foremost advantage of dApps refers to the fact that there is no downtime with them. After deploying the smart contract on the blockchain, the network can always serve the needs of clients who want to interact with the smart contract. Furthermore, dApps can also ensure that any malicious actors cannot launch denial-of-service attacks on specific apps. Since a decentralized application runs on a peer-to-peer system, it will continue to function even if parts of the network architecture are non-functional.

• Censorship Resistance 

Another important aspect about dApps that expands the scope of answers to “What is dApp used for?” refers to censorship resistance. Decentralized apps do not allow control of the data and processes to a single entity. Therefore, it is impossible for any government or entity to block users from submitting transactions or deploying dApps, and even reading data from the blockchain. Without any specific individual or organization controlling a dApp, users have the advantage of complete freedom with dApps. 

• Trustless Computation 

The next crucial value advantage associated with dApp blockchain interplay refers to the analysis of smart contracts and predictable execution without any centralized authority. Decentralized apps establish the foundation of truly trustless systems as compared to traditional models. 

For example, you have to trust the financial institutions in online banking systems and assume that they would not misuse your financial or personal information. However, you don’t have to rely on a central authority anymore with a dApp as the smart contract takes care of everything. 

• Privacy

The most dominant advantage of decentralized apps, which clearly strengthens an understanding of ‘what is dApp’, is anonymity. You would find that a major share of decentralized applications does not demand the real identity of users. Rather than going through a complicated and lengthy signup process, users could access dApps with their Ethereum login credentials and a digital wallet. 

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• Data Integrity

Data integrity is also an important factor in expanding the possible answers for “What is dApp used for?” across various industries. With the power of cryptography, decentralized applications ensure the secure storage of data on relevant blockchain networks. Furthermore, the accessibility of public blockchain for verifying transactions also provides the assurance of reliability in data records. 

Risks with Decentralized Applications

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On the one hand, you have the dApp blockchain relationship establishing promising prospects for digital transformation. While you can notice the advantages of censorship resistance, higher availability, decentralization, and security, it is also important to note the potential setbacks with dApps. Here are some of the notable risks you can identify in the case of decentralized applications. 

• Maintenance 

Decentralized applications present many complications in terms of maintenance due to difficulties in the modification of code and data published on the blockchain network. Developers could not deploy updates to the apps, even in the event of identifying bugs or security risks. 

• Network Congestion

The issue of network congestion becomes clearly evident in cases where one dApp consumes an excessive amount of computational resources. As of now, the Ethereum network could process around 10 to 15 transactions every second. However, sending transactions at a faster rate could lead to faster expansion in the number of unconfirmed transactions.

• Centralization 

While a decentralized application might look like a solution built on Ethereum, it may feature some centralized traits. For example, some dApps could store the keys or other sensitive information on the server-side or execute sensitive business logic on centralized servers. 

• Performance Overhead

The next dominant risk associated with dApp examples would refer to the massive performance overhead and difficulties in scalability. Every node in the network has to run and store each transaction for ensuring the desired levels of security, reliability, integrity, and transparency in a dApp. Furthermore, the consensus mechanisms such as Proof-of-Work also consume time and resources. Therefore, the overhead with dApps is massively larger than the overhead of standard computation. 

• User Experience

Another notable setback for decentralized applications would refer to the difficulty in user-friendly engineering experiences. The average end-user would encounter difficulties in setting up a tool stack for interacting securely with the blockchain. 

Examples of Decentralized Applications

An introduction to dApps will be incomplete without mentioning a few popular dApp examples. Some of the common names among dApps that are popular today include Augur, BitTorrent, and Golem. Augur is one of the top entries among dApp examples, with more than 100,000 monthly visitors to its website. 

It is an open-source, decentralized prediction marketplace based on Ethereum, which helps in creating different prediction markets. On the other hand, BitTorrent serves as a decentralized file-sharing application, and Golem works as a decentralized marketplace for the purpose of renting computational power and resources. 

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Bottom Line

The popularity of dApps is increasing slowly as people and enterprises recognize their true functionalities. Decentralized applications have evolved considerably over the years owing to the innovation and creativity of developers. As a result, we can see many new emerging dApp examples tailored for different enterprises in varying sectors. 

The trick to understanding a decentralized application is to identify how blockchain serves as an important component in its backend. Rather than a centralized entity at the helm of things, dApps place a smart contract to facilitate transactions. However, dApps also introduce many setbacks, such as concerns of centralization and network congestion. Dive deeper into the world of dApps and learn more about them now! 

*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!

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With people’s information being controlled continuously and the lack of privacy, now, demands a new era. Blockchain holding the torch of a decentralized system is making changes, but it’s not enough. Now a new technology called zero knowledge proof is lurking in the market for a chance.

Many of you must have heard about zero knowledge proof example but don’t really know the concept behind it. Zero knowledge encryption is a new protocol that allows adding a higher level of security. But how good is it in reality? Can it actually be the solution we are looking for?

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Table of Content

Chapter-1: Different Ways to Chain in the Blockchain

Chapter-2: What is Zero knowledge Proof?

Chapter-3: How does Zero Knowledge Proof Work?

Chapter-4: Interactive Zero-Knowledge Proof

Chapter-5: Non-Interactive Zero Knowledge Proof

Chapter-6: Zero Knowledge Proof Explained –zk-SNARK Explained

Chapter-7: Enterprises Utilizing Zero Knowledge Encryption

Chapter-8: Where Can You Use ZKP?

Chapter-9: Implementing Zero Knowledge Proofs Architecture

Chapter-10: Conclusion

Chapter-1: Different Ways to Chain in the Blockchain

Typically, blockchain is merely a shared database, where you are keeping a score of who owns how much cryptocurrency or other digital assets. However different blockchain works a bit differently than one another.

For example, you’ll see metadata in bitcoin and other contractual logics in Ethereum. In any case, blockchains, mainly private blockchains offer two severe use cases.

• Owning external assets, which is represented by tokens on the network. A user can also transfer external assets using the tokens.
• Increased privacy and application are more related to general applications of data management.

Not saying, that every private blockchain offers these two use cases. But typically, private blockchains can be more suitable for companies, which needs additional confidentiality and privacy.

Regarding storing general data, blockchain does indeed do a lot of services. First, it needs to prove where the data is coming from, then timestamp it and then making it immutable so that no one can change it.

However, the blockchain doesn’t have anything to say about the information itself. So, every app can decide what the data can actually represent or if it’s actually valid or not. Any bad data could be removed or ignored in the app level without any further disruption in the network itself.

So, if blockchains want to transfer any kind of assets, it needs to offer internal rules on the process of validating those transactions. This is something that the blockchain lacks from the start — one of the blockchain adoption challenges.

Don’t know the fundamentals of blockchain technology? Read this detailed guide on introduction to blockchain features.

Can Blockchain Maintain the Privacy Needed?

For example, maybe you want to send $50 to your friend Kevin. But before your transaction gets approved the network needs to know whether you really have $50 in your possession. Although many blockchains follow this rule different to one another, still in every case, everyone on the network needs to know that you own $50.

This helps to maintain the validity of your assets along with Kevin’s when he receives the money. However, you are sacrificing your privacy for the sake of this validating process.

But there’s a catch. In blockchain, you won’t have a regular identification name such as Kevin. Instead, you’ll get addresses for transactions and all these addresses a stream of strings that has no similarities to the real world.

Even though this information is accurate, still this necessarily doesn’t change the scenario. Why? Well, you can still find many ways to figure out connections between two users and figure out their addresses.

The Issue with Current Scenario

At first, if a user wants to transact or send assets on the chain, then he/she needs to know the address. So, when you send the money, you can see which address it’s going to. On the other hand, if someone is paying you, then you would be able to see where it’s coming from.

If a user knows any information about another user from the real world, then he can easily track and figure out what address the other is using. Obviously, they can search through the chain and figure it out based on their activity.

Yes, it’s time-consuming, but it’s not impossible to know. That’s why having addresses instead of names doesn’t help preserve the privacy of the network.

Can Only Encryption be Enough?

The concept of privacy and sensitive information is closely related to encryption. If you are thinking about storing only general data on the blockchain, then we can definitely do that. In this case, we would still be able to gain data preservation, immutability, and timestamps.

As none of them don’t have anything to do with the data type, therefore, you would still be able to use the distributed ledger to store any data that is only readable. But you would still need to rely on others to validate its existence to help create the block in the first place. So, it’s the same process as before.

However, you can’t use this type of encryption for transactions that signify any transfer of tokenized assets. If you and Kevin encrypt your transactions, nobody on the chain can ever safely use the asset anymore. It’s because everyone will be unsure of where the assets exact location is.

The asset in question would lose its value on the ledger, so encryption can’t be the answer.

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A Conflict between Liquidity and Privacy

Now you can see that, if we want to use blockchain for financial purposes, then you will always face a conflict between these two. Many startups are facing this problem now when they are dealing with assets.

Even though there have been many pilot projects simulating the process on the blockchain, in real life, it’s not the same. The process requires too much activity and thus reveals that two addresses are trying to transact assets.

This is how information gets leaked, and it’s one of the major issues, but there aren’t any specific rules on the network still now.

Now many startups settle all their scores off-chain rather than on-chain where they can encrypt and get the privacy. But blockchain has so much to offer, and on-chain settlements with privacy could lead the world finance at a different height.

Among all these conflicts, we finally have the solution we have been looking for – The Zero Knowledge Proof.

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Chapter-2: What is Zero knowledge Proof?

The concept behind zero-knowledge proof is unique indeed. A zero-knowledge proof is a unique method where a user can prove to another user that he/she knows an absolute value, without actually conveying any extra information.

Here, the prover could prove that he knows the value z to the verifier without giving him any information other than the fact that he knows the value z.

The main essence behind this concept is to prove possession of knowledge without revealing it. The primary challenge here is to show that you know a value z without saying what z is or any other info.

Seems tough? Well, it’s not that difficult.

If a user wants to prove a statement, then he would be required to know the secret information. This way the verifier would not be able to relay the information to others without actually knowing the secret info.

Thus, the statement will always need to include that the prover knows the knowledge, but not the information itself. Meaning, you can’t say the value of z but can state that you know z. Here, z could mean anything.

This is the core strategy of zero knowledge proof applications. Otherwise, they won’t be zero knowledge proof applications. That’s why experts consider zero knowledge proof applications to be a special case where there isn’t any chance to convey any secret information.

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Zero Knowledge Proof Properties

A zero-knowledge proof needs to have three different properties to be fully described. They are:

• Completeness: If the statement is really true and both users follow the rules properly, then the verifier would be convinced without any artificial help.
• Soundness: In case of the statement being false, the verifier would not be convinced in any scenario. (The method is probabilistically checked to ensure that the probability of falsehood is equal to zero)
• Zero-knowledge: The verifier in every case would not know any more information.

Researchers are further investigating the process to be more accurate and make sure it requires fewer interactions between two peers. Mainly the goal is to eliminate the amount of communication and move over to a common reference statement to ensure privacy.

Zero knowledge proof applications have been gaining popularity from quite some time now. But it’s not a new concept out on the blue. It’s been here for more than 20 years. Researchers have improved the output and efficiency of the system.

Now, proving a statement is super easy and highly efficient. It can now go directly with the blockchain system.

Chapter-3: How does Zero Knowledge Proof Work?

Zero knowledge proof applications seem like a unique protocol. However, many of you must be wondering how you prove your statement without actually relaying the information. Well, let me explain it with two most famous examples.

Lets’ start.

First Example: Ali Baba Cave

This is one of the favorite scenarios to properly investigate how the zero knowledge proof authentication works. Here the prover is known as Peggy, and the verifier is Victor.

So, to keep things on the same level as zero knowledge proof authentication, the prover would know a value z, and the verifier would know that the prover knows the value z.

The example starts like this, imagine that Peggy somehow knows a secret word that can open a magic door inside the Ali Baba cave. The cave looks like a ring with the door blocks the pathway to exit. The entry and exit meet in a similar location.

Now, Victor wants to make sure that Peggy is telling the truth. Meaning, she knows the secret word. But Peggy is a private person and is unwilling to say the magic word to Victor. So, how can Victor know whether she is telling the truth or not?

A Different Scheme

Victor comes up with a plan to solve the situation. He marks the entrance path A and exit path B. However, as they meet at the same position, path A and B are just left and right path. During this examination, Victor stays put outside, while Peggy goes into the cave.

Peggy now has the option to take path A or B, but whatever she takes Victor can’t know that. After Peggy chooses a path, she goes in, and Victor enters the cave. He then shouts the path name where he wants Peggy to return. He can select randomly – either A or B.

Well, if she actually knows the secret word, it’ll be really easy. She can use that word to open the door and return to Victor. Or she can also return the same path if necessary.

Suppose, Peggy doesn’t really know the word. In that case, she would only be able to return to Victor, if Victor shouts the name of the path, she chooses at first. As the selection process is random, Peggy would get a 50% chance to follow Victors instruction. But if Victor repeats this process let’s say 15 time or 25 times, then Peggy would not be able to make a lucky guess to fool him.

Anticipating Victors move will become next to zero and Peggy would get caught.

But even after repeating this process so many times, Peggy manages to come back wherever Victor wants her to be; then Victor can safely assess that she does know the secret word.

What Happens with A Third-Party View?

Typically, if a third-party is watching this situation, then Victor would have to have a hidden camera to record the transaction. However, the camera would only be able to record what Victor is shouting – could be either A or B. While it would also record Peggy appearing at B when he shouts B or Appearing at A when he shouts A.

This recording could be straightforward to fake for two people if they agree on this from beforehand. That’s why no third party would be convinced with this record that Peggy actually knows the secret word. If someone even observes the experiment from the cave, he won’t be convinced either.

So, how do they prove the integrity of the experiment?

If Victor flips a coin and then chooses the path based on that, the zero knowledge proof authentication will lose its property. But the coin flip would be convincing enough for any third-party observer to verify that Peggy knows the word.

This way Victor would be able to prove the integrity of the experiment without knowing the word. But it won’t be entirely zero knowledge proof.

In digital cryptography, Victor can flip coin using a random number generator that has some fixed patterns like the coin. But if Victor’s coin behaves like a number generator, then he and Peggy could have faked the experiment again.

Thus, even with a number generator, it won’t be as much as efficient as the simple coin flip.

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Only Single Trial

Did you notice that Peggy could easily prove that she knows the word without saying the word in the first try? In that case, Peggy and Victor need to go inside the cave at the same time. Victor would be able to watch Peggy go through A and come out B, without revealing the word.

But this kind of proof would convince anyone. So, Peggy doesn’t want anyone else to know about it, she can’t say that she conspired with Victor. Because she doesn’t even know who knows about her knowledge and how to control it.

Second Example: A Color-Blind Friend and Two Balls

This type of experiment for zero knowledge proof authentication would require two same sized balls but with different colors. The experiment is really popular. Mike Hearn and Konstantinos Chalkias first introduced this new method. You can also do this experiment using two colored cards.

It goes like this — imagine you have a color-blind friend and two balls. The balls need to be red and green and of the same size. Your friend thinks they are the same thing and is doubting your statement that they are different.

So, you need to prove that they have different colors without telling him which is which.

You give the balls to your friend, and he keeps them hidden behind his back. After that, he brings out a ball randomly and lets you see it. He then puts that ball back and then randomly chooses the ball again.

You get to see the ball this time too. After that, he would ask you whether he switched the ball or not. He will be repeating this process for some time to be sure.

Now that you are not color blind, you can definitely tell that if he switched the ball or not. If the balls were of the same color, your probability for answering correctly would be 50%. So, after repeating this process and when you are able to answer each time correctly, your friend would be convinced.

The probability of anticipation would become zero, and you would achieve the three zero knowledge properties.

But make sure that your friend doesn’t know which one is green and which one is red. This way you will be able to preserve the third property “zero knowledge.”

Chapter-4: Interactive Zero Knowledge Proof

Zero knowledge encryption can be of two kinds –

• Interactive zero knowledge proof.
• Non-interactive zero knowledge proof.

Let’s see what they are.

The Fundamentals of Interactive Zero Knowledge Proof

This type of zero knowledge proof authentication would require interactions between peers or any computer systems. By interacting, the prover can prove the knowledge, and the validator can validate it.

This is the most typical scenario of zero knowledge proof blockchain. Here, you would be proving without disclosing the understanding. But you are also revealing it to the user you’re interacting with. So, if someone is just watching you two, he won’t be able to verify your knowledge.

Although it’s one of the best privacy protocols, still it requires a lot of efforts when you want to prove it to more than one people. This is because you would have to repeat the same process over and over again to each person as just by watching they can’t agree with you.

This protocol would need any kind of interactive response from the verifier to execute. Or else, the prover can never prove it on their own. The interactive input could be a form of challenge or another kind of experiments. Obviously, the process has to convince the verifier about knowing the knowledge.

In other cases, the verifier could record the process and then play it for other so that they can also see it. But whether other people would actually be convinced or not depends solely on them. They may accept it or not.

This is why interactive zero knowledge proof blockchain is more efficient for few participants rather than a large group.

Chapter-5: Non-Interactive Zero Knowledge Proof

Non-interactive zero knowledge proof blockchain is here to verify one’s statement to a larger group of people. You don’t always have to go for the non-interactive zero knowledge proof blockchain to check though. Often, you might be able to find any trusted verifier source who can vouch for you.

But when you can’t find anyone, then non-interactive zero knowledge proof blockchain is the way to go.

The Sudoku Challenge with Cards

Sudoku is one of the most difficult games but with simple rules. All of the rows, sectors, and columns need to have the number 1-9 only once.

In this case, imagine you know the solution of this puzzle, which may take days for even computers. So, if you want to sell the solution how the verifier will know that you are not tricking him? You would have to prove your knowledge without revealing the solution to the verifier.

Let’s see how you can do it.

A Way to Solve

You would need 27 cards where they are numbered from 1-9. So, 27 cards would contain the number 1 and then another 27 the number 2. In total, you would need 243 cards.

Now you would have to put three cards in a corresponding box with the solution. Meaning if the correct number for that box is five, you will put three number 5 cards in that box.

In a Sudoku table, you see some answers are always visible. In these boxes, you will place the card face up. On boxes that don’t have the answer, you will place the cards upside down.

Now you need to prove that you have placed all cards in the right position without revealing it. You have to:

Take the topmost card from each column until you have nine piles. Repeat the same thing for rows and sector.

Then you would need to shuffle every pile and then turn over to reveal the numbers.

You know the basic rule, all numbers from 1-9 have to appear once in every row, sector, and column. So, if all of your pile has the number 1-9 appearing only once then the verifier would know that you have the solution.

Non-interactive can be the best way to prove your statement to a lot of people without increasing resources and costing.

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Chapter-6: Zero Knowledge Proof Explained – zk-SNARKS Explained

You must have heard about zk-SNARKS by now. Ever wonder what it actually is? Well, zk-SNARKS explained is a technology that uses the non-interactive zero knowledge proof example concept. Zcash utilizes this form of cryptography to ensure better privacy.

It’s actually an acronym for Zero-Knowledge Succinct Non-Interactive Argument of Knowledge.

This technology consists of three different algorithms:

• Key Generator: The key generator sets up a parameter to generate a key pair. Here, a trusted source could generate a private or public key pair and then destroy the private part. After that, using the public part generated another key pair. Here, one would be used for proving another for verifying.
• Prover: The prover has to take the proving key and some public input to proof his knowledge. Here, he will be witnesses privately and then satisfy the context to prove his point.
• Verifier: The verification would need the verification key to make sure the statement is true or false. He has to take in the public input and the proof to evaluate whether it’s true or false.

Other than these three the zk-SNARKS also need to maintain –

• Zero-knowledge: The verifier would not learn anything other than the fact that the statement is true. Succinct: Whatever the challenge maybe it needs to be really small so that one can prove it within few milliseconds.
• Non-Interactive: The user would only be sent the stamen to the verifier and nothing else. Verifier won’t be able to interact further with the prover.
• Argument: The proof would hold the soundness of zero knowledge encryption and would be bound by polynomial-time.
• Of Knowledge: Prover and Verifier can’t execute the process without a trusted witness.

Chapter-7: Enterprises Utilizing Zero Knowledge Encryption

Now that you know all about zero knowledge proof let’s take a look at some of the famous enterprises that use this protocol.

Notable Projects

• Zcash

Most of the blockchain platform exposes the transactions between two peers. Not only it’s one of the disadvantages of the blockchain, but it’s also disrupting its growth. Zcash, on the other hand, can provide full-on privacy when it comes to transactions.

It’s open-source and permissionless blockchain platform that utilizes the essence of zero knowledge proof. The transaction process is shielded. So, it will find the value, the sender and recipient on the blockchain.

It’s also famous for introducing zk-SNARKS and after that many have followed its path.

• ING

The ING is a Netherlands based bank who has started their new zero knowledge blockchain. Although they launched a bit of a modified version of zero knowledge system is called zero knowledge range proof. In this one, they require very less computational power than necessary.

It’s directly related to the financial sector such as mortgage value. You will be able to prove that you have the salary to get a mortgage without revealing your salary.

Currently, it’s open source, but it does through a considerable challenge to other financial blockchains.

• PIVX

This company wants to change the typical ways that the world works. In a system where everything is controlled and managed by others, PIVX intends to introduce a safe haven for your financial statements. They are working on a new integration where they will follow the zero knowledge proof example.

Here, the only thing that would be public is the confirmation of sent money. Meaning, you would see that someone sent money, but the address or amount of timing would be hidden. PIVX ensures a faster transaction rate with his new integration with the added enhancement of privacy.

• Zcoin

The company utilizes Zerocoin protocol for providing extra security and completely anonymous transaction. The Zerocoin protocol obviously follows the zero knowledge proof example concept. However, Zcoin offers scalability that many blockchain networks lack.

Here, with the use of Zcoin, you will be able to preserve your identity to the fullest and what you are spending on the network. It’s a great way to protect fungibility.

But don’t confuse them with Zcash. They have different protocols and definitely not forks of each other.

Notable Vendors

• StarkWare

StarkWare is another great company that utilizes the zero knowledge proof example for technology to the fullest. But they seem to twist up the typical SNARKs protocol. Instead of SNARKs, they use STARK technology.

StarkWare aims to improve the privacy and scalability problem of blockchain with a transparent transaction method. They are currently developing the hardware and software support to ensure a better output from their STARK tech.

This new technology will get rid of the hidden inflation problem, which will remove the trusted setup. zkSTARK is the acronym for Zero Knowledge Scalable Transparent ARgument of Knowledge. However, even though the hidden inflation is gone, it will still be quantum resistant.

This new STARK technology could be the next stage of SNARKs.

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• QED-it

This is one of the startups that utilizes zero knowledge proof to provide security. QED-it is an Israeli based company that is capable of handling confidential data without the third party eye. You can integrate into your system for better data management.

Some of their popular customers include BNP Paribas and Deloitte. The main goal is to provide privacy to enterprises. Last two years, they improved their project, developing brand new SNARK systems that can tackle any situation.

Some of their use cases are a real-time risk assessment, supply chain, asset management, predictive maintenance, and many more.

Chapter-8: Where Can You Use ZKP?

ZKP or zero knowledge proof use cases need to be able to work with cryptography and trustable devices. Compared to other devices mobile seems to be the correct choice here. They offer a safe runtime environment compared to browsers. However, it’s not still out of risk.

But the main question is where can you utilize zero knowledge proof use cases?

• Messaging

In messaging end-to-end encryption is necessary. So that, no one can read your private messages without the client itself. Two users have to verify their trust to the server and vice versa. On the other hand, ZKP provides that end-to-end trust without leaking any extra info. With the help of ZKP, no one would be able to hack their way to your message anymore.

This is one of the zero knowledge proof use cases.

• Authentication

Zero knowledge proof can help to convey sensitive information like authentication information with extra security. Here, ZKP can maintain a secure channel for the user to use his/her authentication information without exposing it. Thus, he would be able to efficiently avoid the leakage of data.

• Sharing Data

Sharing data across the internet without a third-party eye is exceptionally crucial. When you share something on the network no matter how protective they claim to be, there are always some risks.

Someone could always hack in or intercept in between sharing information — this is where ZKP can definitely help out.

This is another great one of the zero knowledge proofs use cases.

• Security for Sensitive Information (Credit Card Info)

Sensitive information such as bank statements or credit card info needs an added level of protection. The bank preserves the credit card history. However, when you request the information from them, you have to communicate with their server.

Even though banks go through a secure line, still one’s credit card history is a lot more sensitive than average data. In this case, not just encrypting the whole information as one but blocks, the banks can provide better security.

Because banks would only manipulate the necessary blocks without touching other blocks, your history will get the right amount of security layer. And ZKP can provide that.

• Complex Documentation

ZKP can restrict any user from accessing complex documentation that he isn’t authorized to see. As ZKP is able to encrypt the data in chunks, you will only have to manipulate certain blocks to give access, and restrict access to other users.

This way, unauthorized people won’t be able to see your documents.

• Storage Protection

It can provide greater protection for your storage utility. ZKP is equipped with the protocol to keep the hackers away. With this, not only your storage unit but the information within it will also be encrypted. Not to mention the access channel too will be overly protected.

• File System Control

Everything within a file system can be protected by the zero-knowledge proof protocol. The files, the users and even every login can have different layers of security. So, it can be a great use case when needed.

All of these zero knowledge proof use cases can be used in real life scenario.

Wondering about the role of Zero Knowledge Proofs in Blockchain? Read here How Zero Knowledge Proofs Are Changing Blockchain?

Chapter-9: Implementing Zero Knowledge Proofs Architecture

Before you want zero knowledge proof implementation, you need to know about what it relies on.

Key Wrapping Process

ZKP splits a single stream of data into small blocks. Each of these blocks is encrypted separately. In zero knowledge proof implementation, the key to encrypt will be on the user only, and with that, he will be able to encrypt and decrypt the information.

Managing Privileges

The keys will be stored in containers. But if a user wants to change the storage key, then he would have to compare his ownership tag. If they match, then he will be able to change it, and if they don’t then, it will remain untouched.

Controlling Requests

You should make sure that no one can just add up texts within your zero knowledge proof implementation. As the users will only be able to access it in the blockchain network, you need to convert every operation to API commands.

This way no one would be able to bypass your security measures.

Mitigate All Attacks

The blockchain is not a perfect network. Even if it lowers the amount of attack, it doesn’t fully get rid of it. So, when you integrate ZKP in a system, couple it with other measures. This way you will get rid of the remaining attacks that could potentially harm the network. Zero knowledge proof implementation does require these methods to work correctly.

Is Zero Knowledge System Important?

Zero knowledge proof explained by far has been proving itself to be capable of handling enterprise level businesses. Not everyone is a fan of the public ledger system where everyone can see your transactions. Yes, you do get the anonymity with the help of addresses, but still, people can track addresses too.

Also, when it comes to storing additional sensitive information blockchain isn’t the best idea. Enterprises deal with a lot of private info, and the existing privacy protocol isn’t enough.

Zero knowledge proofs explained only can improve blockchain, but it can also get rid of all the negative issues. Many enterprises aren’t interested in blockchain even though; it’s a beautiful invention. But with the help of Zero Knowledge proof explained, now everyone can start to utilize it.

So, the answer would be yes, zero knowledge system is undoubtedly an important factor regarding blockchain.

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Chapter-10: Conclusion

Blockchain comes with its own set of merits and demerits. Even though at first it seemed quite promising, but it does indeed have a lot of baggage. These faults are slowing the growth of this wonderful technology.

However, with the introduction of zero knowledge system – the knight in shining armor, things have started to change. Now blockchain can be the super protective platform everyone hoped for.

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To streamline the business in enterprises, many companies use ERP systems. These systems are already increasing efficacy. However, some of you may be skeptical about whether blockchain should replace these systems or not.

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BLOCKCHAIN AND ERP- EVERYTHING YOU NEED TO KNOW

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So, will the technology replace ERP systems? Or will blockchain and ERP work together to create a new model? In this guide, I’ll focus on the primary issue of the ERP systems and how blockchain can become the missing puzzle piece.

So, let’s start!

What Is ERP?

Well, if you don’t have a clear idea about what this system is, then I’ll clarify it for you. Enterprise resource planning is actually a software that enterprises use to manage their daily outcomes such as procurement, accounting, risk management, project management, supply chain operations, compliances, and many more.

The best part about this software is that sometimes they come as a suite, in that case, they can also include performance analysis, predictions, budgeting, planning, or reports on daily events. In reality, ERP systems can really boost a company’s performance.

And because you get a flow of reports and can see what exactly goes on in your company, changing plans or strategies become easier.

However, I have to say the system is fully centralized. So, it comes with its own set of issues that can cause more harm than benefiting you. And this is where blockchain and ERP systems fall in. However, I’ll dive into that later. First, I’ll point out the significant issues in ERP systems.

So, let’s move on to the next segment in this blockchain and ERP guide.

What Are Issues with ERP?

• No Clear Definition Of The Production Processes

First of all, many of you may use ERP systems, but when you try to implement it for the first time, sometimes you may forget to define the production process entirely. More so, if your company has different departments competing with each other, then figuring out which department can benefit the most becomes an issue.

Also, some of your existing processes may not even need the system, but integrating it would decrease efficiency. Also, if you don’t map out the operations, clearly, the ERP system can’t work out the process correctly. In reality, it needs a lot of time to perfect, and rushing it won’t help.

This is one of the significant issues of any ERP system that it takes a lot of time to set up. Also, many times, it fails to offer an efficient process for your company.

Anyhow, let’s move on to the next issue in this blockchain and ERP systems guide.

• ERP Systems Aren’t Adequately Flexible

Another major issue of this software is that it’s not quite flexible. So, when it should adapt to your processes, instead, you may have to adjust to its modeling structure. If not, it may not work as you would want it.

Basically, ERP systems come with predefined functionality. Also, they aren’t modular that you can just add up the feature you need. Thus, if your company needs a specific feature, the ERP system can’t offer it every time. More so, you would just be wasting your time and resources, and that can seriously hamper your brand as well.

Anyhow, let’s move on to the next issue in this blockchain and ERP systems guide.

• These Systems Are Resistant To Any Changes

Most of the ERP systems fail because they fear change. Basically, these are old technology that isn’t so keen about new technology revolutions. Furthermore, jobs and business scenarios keep on changing. But most companies don’t flow with that change and rather stay with the old infrastructure.

In many cases, these systems don’t come with frequent updates and soon becomes obsolete in the changing market scenario.

Obviously, changing the internal system would mean delays and time consumptions, however, being resistant would affect it more badly in the long run. More so, many times, you have to get rid of the whole software integration itself and move onto the new ones. And that could mean a lot of investments over again.

Let’s check out the next issue in this blockchain and ERP systems guide.

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• Complicated Or Restricted Functionality

Most ERP systems these days are overly complicated. More so, they come with complex UI designs and odd functionalities that can become overwhelming. Moreover, these systems are also quite restricted when it comes to features.

In many cases, companies get swayed by a marketing agent and then integrated a bad ERP system. It definitely hampers the company’s business and brand value. And that’s why you need to know which ERP system can be beneficial for you and whether that software is up-to-date or not.

Anyhow, let’s move on to the next issue in this blockchain and ERP systems guide.

• High Maintenance Cost

It’s needless to say that implementing an ERP system would cost you quite a fortune. Even though the initial implementation is quite costly and can take a lot of time, still maintenance also becomes an issue. All the ERP systems need to be maintained regularly, and that would also come with associated costs.

Some of the ERP systems may be cheap at the start, but the overall maintenance cost can sum up to be a large amount. That’s why it’s a rather big and unpleasant decision when you are looking for an ERP system for your company.

Let’s check out the next issue in this blockchain and ERP guide.

• Not Using Key Features Or Have An Understanding Of The System

Your consumers also need to understand how the ERP system would benefit them. If you are offering a feature using the software, you need to educate your consumers as well. In most cases, many ERP systems have a complex UI, which is difficult for a user to control.

Also, ERP systems don’t empower the users, and this could have a negative impact on your company as well. More so, as the system isn’t fully transparent, there can be a lot of underlying trust issues as well.

Anyhow, let’s move on to the last issue in this blockchain and ERP guide.

• Poor Data Maintenance, Which Leads To Decreased Quality

Data maintenance in the ERP system isn’t up to the mark now. Many often overlook the transformation of quality data while implementing the system. In reality, this can become a huge burden when your company fully depends on the quality of those data.

Also, as the ERP system is centralized, many take advantage of that and introduce false data to the system. When other parties use that data to implement or strategize their projects, they face major issues.

Also, many times, there’s a lot of human-made errors that can also decrease the quality of data. So, you see, you should never underestimate data quality as your whole brand will depend on it.

Enough about the issues for now. Let’s check out how blockchain and ERP can come together and benefit the enterprises greatly.

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How Can Blockchain Improve ERP Systems?

• Supreme Visibility in Every Stage of the Supply Improves Transparency

Blockchain for ERP systems can offer you the highest level of visibility in every part of the process. Usually, the supply chain tends to be a lengthy yet segmented process. More so, tracking all the processes or how the product is in every stage becomes relatively difficult.

That’s why using blockchain for enterprise technology to track the processes in real-time can really solve the issues of the supply chain. Additionally, you can get real-time reports on where the product is at the moment and what the temperature or the product quality is.

Thus, it can help you store your products in an ideal environment as well.

• Promotes Trusts among All the Supply Chain Participants

With blockchain ERP use cases, you can promote trust within all of your supply chain participants. How? Well, as everything in the system is visible for everyone’s eye, it ensures that there’s no underlying catch or corruption going on.

In reality, it would come in handy when working with a new company rising on the market. Anyhow, ERP systems are great, but they heavily depend on the people rather than the system itself. But in the blockchain, instead of trusting people, to be honest, enterprises can trust the system as no one can do any illegal activities in the network.

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• Authenticating and Verifying Personals before Giving Access to Participants

Another one of the blockchain ERP use cases is the authentication process at the very start. In blockchain and ERP integration, you can set up a multi-factor authentication process to filter out any outsider presence within the network.

More so, with blockchain, you can get bio-metric authentications as well. In reality, you can highly benefit from this approach as you can authenticate your employees based on their location. Additionally, customers trying to reach a salesperson can also prove their identities from this platform.

So, it’s a great addition to the enterprise altogether.

• Smart Contract Implementation to Automate Processes and Payments

Blockchain for ERP can offer you what no ERP system can offer – smart contract implementation. With smart contracts, you can easily verify the transaction with your suppliers. Also, as the process is automated, once the pre-defined rules are met, the contract will initiate itself automatically and process the transactions.

For example, you are trading with another overseas company. So, after initiating a smart contract with that company, you can request for your supplies. In reality, you can track the process of trading, and once you get the product, the smart contract will automatically release the funds.

So, it can be a great feature that you can only get with blockchain.

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• Lowers The Risk Factors In Digital Transactions

Another one of the blockchain ERP use cases is the low risk in digital transactions. In reality, ERP systems can also offer transactions; however, they aren’t that secured as of now. Furthermore, security vulnerabilities enable hackers to target centralized servers and hack a transaction.

However, blockchain with ERP systems can really change the scenario here. In reality, blockchain offers peer-to-peer transaction processing, which is quite effective and fast. Also, the security protocols in every blockchain or enterprise tech are quite high. Thus, hackers can’t get access to these platforms easily.

Moreover, as they have a decentralized environment, it’s quite impossible for a hacker to track down and hack a user’s account. And so, the coupled technology can easily offer high security for digital transactions.

• Offers a High Level Of Security and Data Privacy in Real-Time

Another great advantage of blockchain with ERP systems is that together, they offer the highest level of security. The integration of enterprise blockchain technology will prevent any data leakage, detect any security threat or loopholes, and detect unauthorized activities in real-time.

The best part is that it can not only detect but can also prevent these types of security concerns. In reality, blockchain for business can offer authenticated access and get rid of any unwanted third party. Also, it can offer full privacy to information that’s not for public eyes.

Enterprises deal with a lot of sensitive information, and getting access to based privacy can help to maintain the regulations within the company. Furthermore, it can also get rid of any vulnerabilities due to employee interactions.

• Compliance With GDPR And Secure Storage Facility For Sensitive Information

When dealing with consumers and their sensitive information, enterprises need to be GDPR compliant. Furthermore, you need to ensure that all the information of your customers remains private, and no third-party company can mine those data for market analysis.

Take the Facebook scandal as an example. You definitely don’t want to go through sometimes like that. If you don’t follow the Blockchain GDPR rules, you can face serious legal issues and fines. Not to mention that your brand value would take a massive hit along with that as well.

This is where the blockchain ERP use cases come into play. With blockchain help, you can securely store all the consumers’ information without any issues. More so, you can also be fully compliant with GDPR and offer full transparency in case of handling customers.

• Lowers The Costing Drastically

We all know how small mistakes in the enterprise environment can result in costly penalties. So, when it comes to strategies, you need to be smart with all your finances and avoid any kind of errors altogether. But only depending on the ERP system isn’t enough.

Blockchain for ERP is the perfect solution in this regard as it can automate processes, give you real-time data, track products, transactions, and many more. In reality, with help from these systems, manufacturers can prevent disruptions, manage operations, break up information, and many more. And so, blockchain and ERP can be the smartest way to go if you want to lower down your costing.

• Gives a Competitive Edge and Helps to Be On Top Of the Competitors

One of the greatest blockchain ERP use cases is the competitive edge you get in the market. In reality, the business world is awfully fast-paced, and if you don’t follow suit, then you can soon fall behind. So, when new innovations start to come, you need to be able to embrace it rather than recent it.

And this is where blockchain technology comes in. Blockchain is going to be the tech of the future, and it’s going to create a $3.1 trillion dollar marketplace. Security your place in that market would definitely give you a competitive edge.

Also, blockchain offers lots of features that can increase your brand value and revenue at a rapid rate. So, when you couple blockchain and ERP systems together, you end up with a far more superior-tech that can take your business to the top.

• Provides Accurate Forecasting Reports of the Market In Real-Time

For an enterprise, accurate forecasting of the marketplace is relatively a necessary process. So, many companies tend to get ERP systems for that. In reality, ERP systems are great, but as they have low data quality problems, sometimes accurate data forecasting isn’t possible.

And so, blockchain for ERP can change that scenario and help ERP systems to forecast marketplaces even better. More so, there are plenty of blockchain technologies in the market dedicated to market forecasting. You can definitely use those along with ERP systems.

With the strong forecasting technology from blockchain coupling with ERP systems, you can get more accurate reports of the marketplace, even in real-time! Thus, enterprises business can move towards more realistic and effective goals.

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• Offers Immutable Integrated Information That Increases Data Quality

Blockchain and ERP integration will offer you an immutable system that no one can alter or delete as they wish. In reality, the centralized system of the ERPs is quite vulnerable and faulty. In this model, users can change or alter data after one puts in in the system. So, if an employee wants, he/she can easily manipulate the data and benefit from it.

However, they would not only benefit themselves, but they can also corrupt the data, and that would lead to decreased data quality. And so, with blockchain in the mix, once the data gets into the ledger, no one can change that data anytime soon.

So, now you have fully accurate, unique, and high-quality data that is verifiable anytime. It’s definitely one of the best benefits of blockchain.

• Creates A Flexible, Configurable And Yet Robust System Model

Well, blockchain and ERP integration create a configurable, flexible, and robust model. There are many blockchain technologies out there that offer extensive customizations. Many best enterprise blockchain platforms such as Hyperledger, Enterprise Ethereum Alliance, R3 Corda, Quorum, Ripple and etc. offer an architecture that you can shape based on your requirements.

Also, these systems can quickly adapt to the changing business scenarios and make sure that you don’t end up with an obsolete system. However, make rue to figure out which blockchain technology to choose while you are integrating it with your ERP systems.

Blockchain and the ERP system needs to be fully compatible with each other to make it work. In reality, blockchain can be the shield for ERP systems as they have vulnerable centralized servers that can easily be hacked.

So, in a way, they both can give rise to a robust yet flexible environment.

• Increases Efficiency And Streamlines Processes In Every Department

As time goes by, in manufacturing, the process becomes more and more complicated. Therefore, many enterprises face errors that cause costly outcomes. However, with help from the blockchain with ERP, they can easily automate their business processes.

More so, they can maintain cross-department operations, real-time information, and solutions, eliminating human errors, and many more. By using this new tech, combination enterprises can get rid of the manual labor and increase their efficiency at a rapid rate.

Also, blockchain can really help get rid of the complex processes and false data along with improving deliveries.

You can also save a tremendous amount of time and increase your productivity level. In reality, the automation process of the blockchain can make up for the losses happening in other departments. Also, employees don’t have to worry about all the small details, and the technology can take off that easily.

Furthermore, employees can also enjoy the ease of use and minimal workload. So, in the long run, enterprises can really increase their brand value.

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Concluding Thoughts: Blockchain and ERP Will Interact For Now

Blockchain with ERP system is a huge stepping stone for the enterprises. ERP systems are absolutely effective even though they come with some issues. However, these issues aren’t prominent enough for blockchain to replace ERPs altogether. So, for now, I think blockchain would work as an additive for the ERP systems.

More so, I don’t think blockchain technology can fully get rid of ERPs yet. Rather blockchain and ERP integration can strengthen the automation and integrity of the supply chain.

As far as the performance goes, blockchain comes with its fair share of capabilities as well. And together, blockchain with ERP, the tech can easily change the supply chain industries for good.

But we can’t forget the fact that ERP systems are quite expensive and companies investing in them can’t drop these systems whenever they want. That’s why ERP companies may keep developing more software in the long run.

Needless to say, Blockchain & ERP integration is revolutionizing how public as well as private organizations are looking to create efficiencies. Given its soaring demand, the demand to develop expertise in this technology is also increasing. There are a few career-boosting opportunities that can help you prepare for your professional future and join the revolution in Blockchain world!

The post Blockchain and ERP: Streamlining Your Business appeared first on 101 Blockchains.

And this is precisely where you fall in. If you are a blockchain developer, now you have the highest value in the market. But as the tech is entirely new and keeps on having more features, you must stay relevant. Thus, the use of blockchain tools can surely make your life much easier.

Blockchain Tools That Developers Love

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There are many blockchain tools for developer, but you have to know which ones are the top blockchain tools that all developers love. Let’s check out the list, shall we?

18 Blockchain Development Tools That Developers Love

Geth

Let’s start with Geth. Geth is a command-line tool that also runs a full Ethereum node in Go programming language. Basically, it comes with three interfaces –

• An interactive console
• A JSON-RPC server
• The command and subcommand line options

You can use Geth to do a lot of things in the blockchain. These blockchain development tools can –

• Transfer tokens between two addresses.
• Mine Ether token in the network.
• Explore the different history of the blocks in the ledger.
• Create smart contracts and can later run them on Ethereum Virtual Machine.

What Kind of Systems Would Support Geth?

When working with these enterprise blockchain development tools, you can use different operating systems such as Windows, Linux, and Mac. They all support this command-line tool. Additionally, Binary and Scripted also support its installation.

First of all, when you launch it, you can either connect it to a live blockchain network, or you can create a new one and then connect to that. But you need to remember that the second option would depend entirely on its settings.

For any reason, if you didn’t use any default values, then this tool will automatically connect you to the Ethereum mainnet.

Furthermore, with help from these blockchain tools for developer, you can make it function as a console and load certain commands and execute different objectives.

Anyhow, remember that when you will run Geth, it will automatically download the Ethereum distributed ledger, and it may take a long time to process. So, you might have to wait for several hours to days. That’s why it’s best to use an external hard drive to store all the information.

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Drizzle

Let’s move on to the next one in our blockchain tools guide. Drizzle simplifies the writing of front-end decentralized application by offering a collection of front-end libraries. It also offers a Redux library for connecting a front-end to a blockchain. So, you will get fresh chain data for front-end application developments.

Features of Drizzle

• Reactive Ethereum Data Store

A Redux library is actually at the core of Drizzle. Using this, you can synchronize your transaction data, contract data, and many more.

• Generate Store or Use Existing Ones

In reality, you can use these blockchain tools for developers to generate a store, or you can also use any existing store of your own. All you have to do is to import sagas and reducers, and you’re set!

• Offers Underlying Functions

The best thing about this tool is that it extends web3 1.0’s contracts. So, you will get access to every method and property of web3.

• Component Library

In reality, they offer a library of React components that you usually use in dApp functions. So, tasks like generating input forms for smart contracts is an easy task.

• Modular Architecture

The overall architecture of this tool is modular. So, you can add any kind of feature or get rid of any kind of functionality as you wish. Furthermore, it includes two packages for using React; however, the core functions are within the Drizzle module. More so, if you know how to work with Redux, you can quickly develop an Angular library.

The three main components of Drizzle are –

Drizzle – It’s the core library for web3, contract, and account instantiation. Also, it can wire up the necessary synchronizations along with offering added contract functionalities.

Drizzle-react – This component offers a DrizzleConnect helper and a DrizzleProvider component for connecting to Drizzle with the React app.

Drizzle-react components – Additionally, you’ll get a library full of many useful components that would work as a dApp function. Mainly it includes ContractForm, ContractData, and LoadingContainer.

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Solc

When it comes to developing on Ethereum, all developers opt for stability. In reality, developers should always opt for it, especially when it comes to smart contract integrations. Solidity happens to be at the core of every smart contract on Ethereum.

Solidity is basically a trimmed down and object-oriented language and uses a syntax that’s mostly similar to ECMAScript. What the Solc tool can do in this regard is to convert it to a machine-readable format so that EVM can read it and execute it. You could think of it as a solidity compiler that revolves around two main principles –

• C++ coded solc.
• Solc-js that use Emscripten for cross-compiling the solc C++ straight to JavaScript.

Even though the two types of solidity compilers originated from the same source file, still they both can generate a different result. Furthermore, both of their command-line interfaces are different from each other. However, in comparison, solc-js is a bit slower than solc.

The best part is that Ethereum nodes tend to come with an implementation of solc. However, the solc package is actually a standalone module, and you can use it offline as well. Moreover, you can use solc.compile() as well because this one doesn’t need any external node to function properly.

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Remix

It’s a Solidity IDE. You can use Remix to write codes and check errors from your browser. In reality, it’s one of the blockchain development tools written in JavaScript. More so, you can use this tool like a compiler, mainly for small smart contracts. Also, if you are just starting to learn about Solidity, you should definitely give this tool a shot.

Once you go into the website’s default page, you’ll get a side screen that would allow you to write code right there in the browser! On the other screen, you can easily deploy your code on the blockchain platform.

Furthermore, the second screen will also help you interact with any functions you have written. It also supports the handlings are done locally or the browser. Anyhow, you can also do testing’s, debugging’s, distributions of smart contracts, and etc.

Also, the code analyzer would help you perfect your codes and get rid of any errors. So, it can be one of the greatest blockchain tools for developer is he/she is a beginner.

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Ganache CLI

It’s actually an extremely fast Ethereum RPC client for development and testing. I have to say, this is yet another one of the good blockchain development tools out there. It was previously known as Testrpc but later came to be as GanacheCLI. In reality, it’s a NodeJS bundle that you can also customize.

Basically, it can replicate an entire Ethereum network on your computer. Also, you can call a function from the blockchain without any Ethereum nodes running on your PC.

Additionally, it offers these features for you to try out –

• Almost instant mining of transactions.
• No transaction fees.
• Customizing the mining speed or gas prices as you please and as many times you want.
• Recycling, instantiating or resetting all the accounts in the testnet for a defined amount of Ether.
• Very easy and simple Graphical User Interface from which you can overview all the events in the testchain.

Other Features

• You can see the status of all the accounts, including their private keys, addresses, balances, and transactions.
• Oversee the log outputs of Ganache blockchain along with responses and debug information.
• Just with a click, change the mining clocks.
• Get a block explorer to give you more clarity on how your system is working.

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Truffle

Another one of the blockchain tools for developer is the development environment where you can test frameworks and asset pipeline for Ethereum – Truffle. Apparently, Truffle is quite popular among developers because it can make the development of the Ethereum framework a simple task.

Features

• Lifecycle Management of Smart Contracts

Apparently, this tool can manage your contract artifacts and also includes support for any custom deployments, complex Ethereum applications, and library linking.

• Contract Testing

You can test your contracts automatically and ensure that they develop quickly.

• Scriptable Migrations and Deployment

You can use this blockchain tool to write simplistic and manageable deployment scripts to anticipate your contracts change as time goes by. It will let your app to evolve and be relevant even in the future.

• Management of Network

You don’t have to manage any network artifacts once you start to use Truffle. Moreover, it will take care of those while you concentrate on dApp development.

• Highly Powerful Interactive Console

Well, interacting with contracts has never been easier. In reality, Truffle would allow you with a simple interface that can have your time and let you interact with your contracts.

• External Script Runner

You can use this blockchain tool to bootstrap all your contracts and run on the network without any issues.

EtherScripter

If you are a newbie in the blockchain development niche, then Ether scripting can be a difficult task for you. But with this type of blockchain analysis tools, you can code basic contracts quite easily. In reality, this blockchain tool would offer you a very interactive and fun interface to write all your codes.

Furthermore, you can simply drag and drop all the functions to make the smart smarts. It’s quite simple to use. However, at this moment, you can only use Serpent programming language in this type of blockchain analysis tools.

MetaMask

Another one of the great blockchain management tools is the MetaMask. With MetaMask, you can not only serve Ether or any other ERC-20 tokens on the network, but you can also interact with your decentralized applications. More so, it also lets you run it from your browser!

Furthermore, it’s extremely easy to add MetaMask as a Firefox or Google Chrome add-on and start using it right from the browser. After you install the app, you’ll get an Ethereum wallet added to your browser. It will store all the ERC-20 tokens for you.

For developers, this type of blockchain analysis tools won’t need any live Ethereum node to run. So, interacting with the Ethereum network space is a simple task.

Embark

If you want a blockchain development framework for your decentralized applications, then Embark can really help you out. In reality, this type of blockchain management tools will let you manage your dApps, along with giving you all the necessary tools to create and deploy a new one.

Additionally, you can create an independent html5 app that would use decentralized features. Furthermore, you can also create new smart contracts here and launch them in the JS code. The best part about this type of blockchain management tools is that they lookout for any changes you make in the contracts. If so, it will automatically modify contracts and then update the decentralized applications linked to them.

Smart contract migrations are also a plus point of this blockchain tool. In reality, for working on the platform, you can use any traditional language such as Meteor, Angular, React, and many more.

Gorli Testnet

You know the best way to fully test your network without going live would be to harness any testnets. And this where this type of blockchain analysis tools comes in. Gorli Testnet is one of the popular ones out there. Here, you can deploy your dApps and experiment with smart contracts.

More so, you can use it across all client blockchain implementations and get high reliability and availability. Anyhow, Gorli is actually a proof-of-authority cross-client testnet that works with Parity, Pantheon, Geth, EthereumJS, and Nethermind.

However, it’s open-source and is a community-based project.

Parity

Parity is another one of the blockchain management tools that’s built for mission-critical use. It’s a client for Ethereum that uses Rust programming language. More so, this blockchain tool offers the core infrastructure needed for reliable and speedy services.

You can build your very own customizable blockchains for enterprises, private use, or for research purposes, as well. You’ll get –

• Modular and clean code base and customization
• Minimal storage and memory footprint
• Use Warp Sync to synchronize in hours
• Very advanced CLI-based client
• Different and pluggable consensus protocols
• High level of access control and privacy features
• Fast transactions

The best part about this blockchain tool is that it’s 100% reviewed, and the developers do routine codebase checkups to get rid of any bugs or issues.

Hyperledger Caliper

It’s a blockchain benchmarking tool. It allows you to benchmark your blockchain solution using predefined standards. In reality, with this type of blockchain analysis tools, it can get really easy to know whether your blockchain platforms are up to the standards or not.

Once you predefine your set of use cases, it can start working its magic. In reality, you’ll also get reports on transaction latency, Transactions per Second, resource utilization, and many more.

However, you have to know for Caliper to help you out; you need to build your blockchain solution on Hyperledger.

But as you can see, it does not have any default set standards. But why is that? Well, blockchain technology is quite diverse, and every single platform is different. It’s utterly difficult to analyze all the platforms under the same pre-defined set.

So, instead, you can set up the standards based on your industry and then run the tool to see how it performs. That’s why it’s one of the handiest blockchain management tools for the developers.

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Tierion

Tierion offers an environment where you can turn your blockchain into a global platform and verify files, data, and business processes. These kinds of tools for blockchain will help you construct a valid database and help you distribute those data to the ledger.

Furthermore, this blockchain tool also offers ChainPoint that can produce receipts and record data. And so, you don’t need any intermediates to verify the information. Anyhow, with the help of this blockchain tool, you also can combine the Tierion API and ChainPoint to timestamp every data to finalize the verification process.

It’s capable of producing millions of proof every second. Furthermore, this type of blockchain technology tools offer accuracy by –

• Getting all the data from the Network Time Protocol servers
• Using available data from the National Institute of Standards and Technology
• Linking anchor nodes to the Ethereum or Bitcoin blockchain

EthFiddle

If you are a developer that started with Solidity, you may know that there aren’t many blockchain technology tools for working with this language. However, to help you out and offer you similar tools like JSFiddle or Go Playground, the Loom Network introduced EthFiddle.

EthFiddle is one of the tools for blockchain development that offers rapid testing and prototyping. It’s actually a Solidity IDE on your browser. In reality, this blockchain tool is capable of testing, creating, debugging Solidity codes for your smart contracts.

Additionally, you can also share the permalink of your code with just a click. So, you see if you are new to the Solidity environment, you might want to give EthFiddle a try.

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Web3.js

Web3.js is one of the tools for blockchain development that helps you to develop clients for interacting with Ethereum blockchain. Basically, it’s a library that is Ethereum-compatible JavaScript API. And it implements Generic JSON RPC spec for interacting with a remote or local Ethereum node.

So, with this, you can do tasks like sending Ether between address, write and read smart contract data, develop smart contracts, and many more.

As the blockchain tool runs on JavaScript language, you can use it in any kind of web browser. But you’ll need Ethereum node that can access the Ethereum network via HTTP for using this type of blockchain technology tools. I can suggest using MetaMask extension with Web3.js for connecting to the Ethereum network.

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Status

Status is another one of the tools for blockchain development.  In reality, it’s a multi-purpose communication tool that comes with a decentralized crypto-wallet, peer-to-peer messenger, and Web3 browser. Basically, it’s a mobile Ethereum client that lets you access the ecosystem from anywhere.

As for the messenger, you can join any public channels and send and receive messages from another user. Also, the high level of encryption makes it impossible for anyone to get access to your messages.

Furthermore, with the help of the blockchain tool, you can interact with your decentralized applications and use the integrated wallet.

From the browser, you can directly access the networks, marketplaces,  and many more. Also, with the extension tool, you can add up features to this mobile client.

Infura

Infura is a standards-based, scalable, globally distributed cluster and API endpoint for IPFS, Ethereum, and any other infrastructures. In reality, this type of tools for blockchain development is made only for developers. So, you can quickly use this tool to connect your app with their instant access APIs.

Apparently, this blockchain tool supports JSON-RPC over WebSocket interfaces and HTTPS offering subscription and request based connections. More so, with just a single URL, you can start using Infura. The team behind the tool would take care of all the upgrades and network changes so that you can focus on your creation.

Mythx

There’s a high demand for smart contract development and decentralized applications. However, there aren’t many blockchain technology tools that offer a full suite. This is where MythX comes in. Basically, it’s a security analysis tool for Ethereum based smart contracts. More so, with this blockchain tool, you will get dynamic and static analysis all in one tool suite.

There are many products for you to test out, such as Truffle, Amberdata, Alethio, Visual Studio Code, Remix, and Embark. So, you can easily couple this blockchain tool with the other tools.

Furthermore, it can detect security issues quite efficiently and is highly scalable.

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Conclusion

Blockchain technology tools can really save your time and make your blockchain development process easier. As a developer being efficient in blockchain adoption is a must, and a deep understanding of the popular blockchain development tools can help greatly.

In this guide, I’ve given all the tools that developers are loving these days. So, now that you know what these different blockchains tools are, it’s time for you to dive in and start developing.

*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!

The post Blockchain Tools That Developers Love appeared first on 101 Blockchains.

In reality, commercial real estate holds a significant role in the overall world economy. According to MSCI, the global real estate market increased from $8.9 trillion in 2018 to $9.6 trillion in 2019. Although it seems like the industry is doing quite well, it actually consists of many frictions and liquidity issues.

The market is now too volatile to invest in and only available to the high class. Interestingly, multiple blockchain-based real estate companies emerged over the years, and now they intend to disrupt the way this industry works.

The threat is real, affecting the traditional ways of real estate, which will soon become obsolete. Therefore, the only way this industry can survive is through integrating blockchain into their business models.

That’s why, in this guide, I’ll follow through on how this technology is disrupting real estate and how blockchain for real estate initiatives is the best approach at the moment.

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Blockchain For Real Estate: What Are the Biggest Problems of Real Estate?

Not Open to Everyone

Well, frankly, the real estate industry has always been an investment choice only for the rich only. However, previously middle class could attempt to use this as an option, but it’s way out of their reach. There aren’t many assets that can act as an alternative to real estate for the middle classes. But why is the situation so harsh now?

In reality, a lot of barriers are in place to prevent the majority of the population from getting access to real estate. For example, credit scores, international bank accounts, accreditation, citizenship, financing, access to the right sponsor, cash requirements, and fund managers are some of the major barriers.

Also, this industry deals with a lot of middlemen, which raises the difficulty level for the general population.

Lack of Transparency

The level of dishonesty and corruption plagues this sector heavily. As there is no concept of transparency within the business process, it deals with tax evasion, scams, money laundering, and so on.

Globally every year, $800 billion to $2 trillion dollars are laundered. And a significant portion of it is through real estate schemes. More so, the estimation of money laundering happening in real estate is around $1.6 trillion.

Obviously, it’s a massive issue that the government is having trouble dealing with. So, if the business model starts to incorporate transparency, it can fight back the corruption.

Very High Fees

This is mostly a concern for investors who are interested in investing in international real estate. But to do that, they have to pay a huge amount of fees in various stages. For example, there are broker fees, exchange fees, taxes, attorney fees, transfer fees, investment fees, and so on.

Also, as the number of middlemen in this sector is quite overwhelming, they all take their own cuts, raising your overall budget for the investment. More so, you also have to keep in mind that you will need to use accountants and consult lawyers to keep your tax records clean as well.

So, overall, it becomes a costly investment option.

Low Liquidity Levels

Well, I think everyone knows how difficult it is to liquidate real estate assets. It’s one of the major reasons why this sector really needs to change. Here, by liquidity, I mean how quickly you can convert your real estate asset to cash. Due to the high fees and high-value point of real estate assets, there aren’t many buyers around to help you sell your asset when you need it.

So, finding a buyer for it is a lot harder than other types of assets. The problems are the barriers to entry, low availability, too many regulations, lengthy processes, and so on.

All of these problems discourage potential buyers from investing in real estate.

High Pricing Commitments

This is yet another issue that prevents the middle class from ever consider real estate as a good option. In reality, this type of investment needs a lot of capital upfront. Not a lot of people can afford that. More so, only a handful of higher classes can show that much capital upfront.

In many cases, investors have to search for other expensive alternatives to reach pricing commitments. Also, as the market is volatile, it’s a considerable risk to bet this much money on an asset. Although you may have an excellent credit score in your own country, you can’t use that for international markets.

Slow Transaction Speed

The horror of buying real estate starts with the insanely slow transaction processes. Not only is this sector massively inefficient most of the time, but it also makes a lot of errors in the process as well. Also, finding the right property takes a lot of time too.

Apparently, it takes about 6 months on average to find a property and then another 6 months to go through all the procedures to acquire it. That is a massive amount of time to waste in investment schemes.

If you keep all of this in mind, you’ll see why this sector needs a disruptive force at the moment.

Start your blockchain journey Now with the Enterprise Blockchains Fundamentals

What Are the Benefits of Blockchain In Real Estate?

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There are some benefits to using blockchain in the real estate sector. Let’s check out what these are –

• Increased Transparency

It’s no doubt that blockchain is perfectly capable of offering the transparency that the real estate sector needs so badly. As you already know, the real estate sector deals with a lot of corruption. But with the help of transparent systems, this can finally stop. If real estate companies start to use blockchain for their solutions, the customers can see just where the money is going.

Also, as the main database will remain public, no one can alter or even remove any transactions once it gets into the blockchain.

We believe this is the best solution at the moment.

• No Data Silos

Data is all scattered around the real estate agencies. Therefore, you will never find any single source of point where you can get access to all the information necessary for your purchase. It’s even more essential for enterprise companies. If there is only a single database containing all the information from various stakeholders, then the efficiency of the company will increase greatly.

Blockchain can offer that. In reality, blockchain can offer tamper-proof shared logs that can compile every single information about a property. So, using blockchain in real estate can quickly solve a massive issue and increase the overall revenues as well.

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• Efficient Transaction Processes

In reality, the transactions happening daily in real estate are through wire transfers and need a lot of time. More so, in many cases, the KYC verification or other documentation takes a lot of money. But with blockchain, transactions can happen within minutes.

Even in the worst-case scenario, it can complete a process within a day, whereas previously it took days to finish. So, the investors or customers will become more eager to invest and not shy away from it.

But you need to ensure that your blockchain solution can meet up with your company’s daily demand. If it can’t, then you’ll end up with a slow system.

• Limited Intermediaries

The best benefit of using blockchain in real estate is the reduction of the overwhelming intermediaries. In reality, too many intermediaries give rise to complexity and added cost. Blockchain is effective in eliminating the middlemen from the equation. So, by going fully digital, you won’t have to deal with the unnecessary middleman cuts.

Also, any new listings on the platform will go through a thorough verification process. So, there is no scope for scams or fraudulent activities in the sector. Not only it’s more efficient for the investors but for the large real estate companies as well.

Want to know more about the benefits of blockchain technology? Why don’t you check out our guide on the benefits of blockchain technology?

Probable Use Cases of Blockchain In Real Estate

• Increasing Liquidity

One of the best use cases of blockchain in this industry is the increased liquidity. In reality, using blockchain can create a platform where real estate companies can offer their services and properties for buying and selling.

More so, individuals investing in real estate assets can also list their properties for better reach. Public blockchain platforms can welcome anyone to list out their assets. However, they will have to go through an authentication process to check their background and eliminate any scams.

But having a platform for buying and selling properties will help connect potential buyers with sellers more efficiently.

• Better Property Search Process

Searching for the perfect property is a real nuisance because there aren’t many platforms that offer legitimate options. Nowadays, people are more interested in searching online rather than go there in person. So, it’s only common sense to look for platforms that offer this feature.

But in most cases, these platforms offer minimal access to properties. More so, in many cases, they have expensive subscription fees. Also, another issue of this type of platform is the lack of updated content. In most cases, they don’t even update whether a property is already sold or not.

Therefore, using blockchain can help tremendously as brokers can directly control the data, and consumers won’t have to deal with third parties. That’s why blockchain for real estate can offer better property search options.

• Full Transparency in Title Transfers

There are so many horror stories revolving around buying homes. From property history to foreclosures, there are too many scopes of making errors every step of the way. Due to all of this, a home purchase can come back and cause a lot of issues to the new homeowner. In reality, without full transparency in the title transfer process, many face even legal issues once they buy a new house.

This is where blockchain can really come in handy. Using smart contracts in real estate, they can streamline the process of the title transfer. Both the buyer and seller can see for themselves who is the property’s current owner, and future buyers can also view who owned the property over the years!

• Automated Property Buy and Sell

Again, the process of buying and selling properties takes up a lot of time. During this time, the pricing can change, along with the fee of the brokers. With all of the issues, the sector is falling behind drastically. So, using smart contracts in real estate can ease the process of buying and selling properties.

In reality, blockchain technology can automate the whole process of buying a house. The consumers can go to a platform where potential sellers will display their assets. Once they pick one, they can go over to take a look physically or get a tour virtually. After that, all they have to do is set up the parameters and process the payment, and they are done.

All of this can take only a few days to finish.

• Preventing Title and Deed Fraud

Another one of the blockchain real estate use cases is the prevention of deed and title frauds. You won’t believe how much issues deed fraud is causing over the last decade. In reality, this kind of fraudulent activity is increasing at a rapid rate, specifically in internet property sales.

More so, people can sell off their assets to another party without your knowledge, which is quite scary to start with. But as blockchain can store all of the property information and owner information, and legal documents on the ledger, there’s no way any third party can take control over your assets.

• Fighting Wire and Email Fraud

Did you know that real estate-based wire and email scams are rising at 480% every single year? That is way too many victims with more significant losses every year. More so, this sector is quite an expensive option to start with, and then this type of crime makes people more reluctant to invest in it. In reality, criminals can pose as agents or companies to scam people into giving them money.

As there isn’t any proper security protocol in place, many agents even get their identities stolen and then get caught up in the criminal charges. But blockchain can reduce this number drastically. We don’t know whether it can fully get rid of the problem, but it can surely fight heavily against it.

• Decentralizing Multiple Listing Services

Another one of the great blockchain real estate use cases is the use of decentralized MLS. Typically, in MLS, corporate brokers come together to form a database for properties. Here, they can share information with each other to make a potential sale. So, once a property gets sold, the commission is split between the brokers.

This is a ripe market, but without a proper networking base in place, criminals can hack into this system as well. More so, using blockchain in MLS can decentralize the process, making it impossible to manipulate.

• Fractional Investing or Ownership

This is another creative take on blockchains use cases. Using blockchain technology, real estate companies can offer fractional investment options. Typically, it means that multiple owners can own a portion of a property that is not affordable individually. So, if the middle classes want to invest in a high pricing property, then they can share the ownership with others.

In reality, it’s an excellent solution for buying and selling real state assets because it can include more people than usual, increasing the overall liquidity options.

You can use smart contracts for real estate to facilitate the transactions and save time.

• Token-based Ownership

This is one of the brilliant blockchain real estate use cases. In reality, it’s a different take on the whole real estate assets. For example, you can invest in a multitude of assets using tokens. So, here, the tokens will represent a value for the assets. So, it’s not like you will own a specific property rather than you will invest in the tokens that will represent a collective of said property.

Thus, it’s more similar to investing in gold, which has very little risk associated with it. In fact, there are already multiple projects in place for this type of application.

• Preventing Mortgage Fraud

Mortgage fraud is one of the main concerns of real estate industries. In fact, the increase in property value is only increasing the percentage of this type of fraud. So, the industry will cont8nue to have losses that can go up to billions. Just in the USA, this fraud causes a loss of $2.5 billion every year! Can you imagine that?

But if you start to use blockchain for real estate, then you can prevent this type of fraud right from the start. As everything will get monitored online, no one can sneak through the system without detection.

• Transparent Property Inspection

There’s a lot of problems regarding property inspection. In reality, property inspection causes more losses to the buyers than sellers. For example, many scams in real estate companies showcase a fake property to the buyer. In many cases, buyers only invest in the property not to use it but to sell it when the price rises. So, they may not even know that the property they invested in doesn’t even exist.

But once you convert to blockchain for real estate, you can get transparency in a property inspection. Theirs is no way to cheat the system here, and you will see the right property that you will invest in. More so, you can also see past history any issues in the property just from the platform.

• Cutting Real Estate Costs

This is by far the best use cases of blockchain. Once companies start to incorporate blockchain into their networking system, they can make the whole process automated and then cut down the cost drastically. More so, it will not stay limited to only the organizational level, but it will also help the consumers as well.

When blockchain takes the place of the middlemen, you won’t have to pay extra fees to buy the properties. The drastic change in the intermediary model will ensure lower cuts, and it will also save a lot of time.

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How Organisations Are Using Blockchain For Real Estate

• Lantmäteriet

Lantmäteriet is a Swedish government real estate agency that’s working with blockchain technology. At present, it’s working on a new solution that will facilitate their land registry process. More so, it will also get rid of any discrepancies and make the process more seamless.

• Brookfield Asset Management

Well, Brookfield Asset Management is one of the biggest real estate enterprise companies in the world at the moment. At present, they have taken a keen interest in blockchain, and they plan to work on a solution to integrate it into their internal networking system. They believe they can reduce their costs drastically using blockchain for commercial real estate.

• Link REIT, Hongkong

Link REIT in Hongkong is working with Allinfra for a blockchain project in real estate. However, this is more of a pilot project where they are checking how blockchain is working at the moment for this sector.

• JLL

JLL is also working on blockchain real estate projects. Using the technology, they are going for Spanish commercial real estate valuation. More so, they believe that they can use it to construct and finance projects as well.

• Westfields

Another one of the good examples of blockchain real estate projects is Westfield’s solution. They are working on a solution that is focused on offering real estate bank guarantees. Also, it will mainly introduce leaseholders in the retail sector.

• Coldwell Banker

Coldwell Banker is one of the real estate giants that is working on blockchain-based solutions. In reality, they are using blockchain for listing out agents, sellers and offering transaction processes. Also, they want to streamline their transactions and contracts from a single platform.

• National Agency of Public Registry

National Agency of Public Registry of Georgia is one of the examples of using blockchain for commercial real estate applications. In reality, Georgia is working on a solution that will enhance their real estate transparency and cut costs and increase efficiency.

• Prologis

Prologis is working on a solution-focused on logistics real estate. This is yet another great addition to the blockchain real estate projects list. At present, they have joined forces with Blockchain in Transport Alliance (BiTA) to develop royalty-free data standards for the logistics companies.

• Mata Capital

Mata Capital is a French real estate fund management company. They are currently working on blockchain solutions that will focus on optimizing and modernizing the process of maintaining and distributing funds of their investor registry.

• Dubai Land Department

Dubai Land Department is working on blockchain for commercial real estate options. In reality, they are working on a solution that will focus on recording all of their local real estate contracts on the ledger. More so, they plan to secure all related government documents on it as well.

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Conclusion

Blockchain for real estate is a field that needs more exposure in the world. This sector is full of corruption and criminal activities. However, the importance of this sector is all-time high now. So, without proper guidelines in place, there is no way this sector can bloom effectively and get rid of the corruption for good.

It needs a change, and blockchain is definitely up to the task. Therefore, it’s only a matter of time when real estate companies will see blockchain’s worth and start mass integrating the tech.

*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!

The post Blockchain for Real Estate: How This Disrupts the Market appeared first on 101 Blockchains.

Blockchain’s undying fame is giving rise to many unique products. Obviously, these are heavily influenced by the underlying mechanisms of this extraordinary tech. Thus, the need for a professional to handle product development is at an all-time high.

The blockchain product manager mainly defines the when, what, and why of the blockchain-based product. You know what this means? It means the manager will have to lead cross-functional teams to ensure a product’s conception to the launch. As the position is crucial, most of the time, the job description isn’t adequately defined.

As a result, the responsibilities will vary from company to company, and it may seem like they aren’t for a similar position. The confusion mainly comes from the recency of this role. When established positions like engineers or developers have fixed roles, product managers are still trying to define what roles they should take on. That’s why this guide will focus on a blockchain product manager’s realm and the skills you may need to get a job in this position.

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Who Is A Blockchain Product Manager?

A blockchain product manager is responsible for developing blockchain-based products in a company. In reality, this practice is called product management. Basically, the product managers are capable of creating a strategy behind a product and oversee the launch of that product from start to the very end.

More so, they may have to coordinate between the work done by others, such as product designers, data scientists, and software engineers. Without a capable product manager, it’s challenging to make a product successful.

Blockchain product manager jobs include responsibilities like ensuring the product meets with the user’s needs, researching the market for valuable inputs, and so on. Anyhow, the responsibility will likely vary as the product goes through various phases of development. In the earlier stage, it will focus on customer analysis and resource management. In later parts, it will move to testing out the product and launching it effectively.

Not only that, but the product manager also ensures that all the members of the team are in harmony and follow the primary goal of the product. Therefore, to stay relevant in the markets, the manager needs to come up with new ideas. So, you see, it’s actually an essential position because, without a blockchain project manager, it’s not possible to successfully create a product.

Get familiar with the terms related to blockchain with Blockchain Basics Flashcards.

What Do You Need to Become a Blockchain Product Manager?

As you already know, the responsibilities and the skills needed to become a blockchain product manager vary greatly. So, it’s kind of hard to pin-point the exact skills you need for blockchain product manager jobs. That’s why I’ve divided up the list of skills into several parts based on what the enterprise companies generally want.

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Hard Skills –

• Understand Decentralized and Distributed Ledgers

Understanding the concept of distributed and decentralized ledgers is one of the critical skills you will need for product manager posts. Actually, you are only expected to know about blockchain technology. However, the popularity of the distributed ledgers makes this technology worth the shot. You can get inspiration from these technologies in order to come up with unique product outlines.

I would suggest enrolling in any blockchain product manager training to better understand how they work. In reality, these training courses can help you realize the mechanism behind each of the distributed ledgers. But always remember to go for the best ones only.

• Be Able to Develop Blockchain-Based Solutions

This is another one of the hard skills for a blockchain product manager. As you will directly work on the product, you have to know how to develop blockchain-based solutions. In reality, product managers in this field need to know about software development because you will directly work with your company’s tech products. So, without understating how to develop them, you can’t possibly make the product, let alone lead the team that’s going to create the product.

It’s best to start with JVM, Node.js, or even service integrations. You can also try to cover the database configurations too. In reality, all of this information will help you develop the products much better than before.

• Master Blockchain Infrastructure Configuration and Development

Without mastering blockchain infrastructure configuration or development, it’s not possible to roll out the product for your clients. A blockchain project manager needs to have a thorough knowledge base of the configuration process. In reality, it’s a massive boost for your resume and will help you make strategic decisions for your products.

But I have to warn you, it may take a bit more time to master them as they are more complicated. Anyhow, I will recommend starting with dissecting established blockchain products in order to get a good understanding of how they work. This should really help you out. Furthermore, you can also try out any blockchain product manager course to learn about the topic from a professional instructor.

• Be Familiar with Blockchain Platforms

Make sure to learn about different blockchain platforms as well. In reality, one of the crucial reasons to master the blockchain platforms is knowing how other platforms work. Without understanding how these works, you can’t use them as the base of your product development.

Also, most of the time, these platforms tend to use different methods to reach consensus or even distributed nature. So, the outcome will vary greatly as well. Anyhow, I would suggest you check out the whitepapers of DAML, Ethereum, Hyperledger Fabric, Hyperledger Sawtooth, and Corda to start your training process. This is actually an excellent way to apply for high paying jobs, as you are already qualified for product development.

• Be an Expert in Blockchain Standards and Ecosystem

Blockchain ecosystems and standards vary based on different platforms. For example, the standards Corda uses differ greatly compared to Ethereum. As of today, Ethereum is more popular in this niche. So, you may want to start with learning about Ethereum’s standards and then slowly move towards other popular ones.

You just be wondering – what benefits will this skill offer me? You will also recognize the pattern in which they all work and then use them in your development processes. I guess you can seek proper guidance from a blockchain product manager training course to learn about them in a structured way.

• Have Knowledge of Industry Insights and KPIs

This is one of the core skills of a blockchain project manager. In any way, you can’t skip mastering this skill. In reality, you need to have knowledge of how the industry and market works. You have to also follow industry trends and track down critical KPIs (Key Performance Indicators).

More so, you have to discover customer conversion rates, user churn, daily active users, customer acquisition costs, features usage, customer satisfaction elements, and so on. Without leveraging the data that customers are generating, it’s impossible to roll out a product and expect an excellent output. So, make sure to sharpen this skill so that you can quickly research the topic and come up with usable statistics for the product.

• Understand Blockchain Architectures

Blockchain architecture is a complex topic to begin with. So, at first, you may find it difficult to understand. But it’s necessary for you to fully grasp how each of the types works. Mainly, you will see public, private, consortium, and hybrid blockchains.

Also, these have a different working process and offer additional features. Obviously, these all have different levels of disadvantages too. So, when your client outlines what they want, you need to make educative choices on which architecture fits their needs. Anyhow, you can try to learn about this on your own, or you can enroll in a blockchain product manager course to learn from an expert.

• Learn to Develop Blockchain Product Specification

For your blockchain product manager training, you need to learn how to develop blockchain product specifications. Here, you will start with understanding how various blockchain products are marketed and packed. More so, you need to take in what the client wants and what their consumers want as well. In any case, if you fail to define the specifications of the products, the consumers won’t understand what you are trying to offer.

You can give a proper outline of the product specifications to your team to keep them focused on the goal and increase efficiency. In reality, it’s a good practice to have the goal in mind before starting to work on each product.

• Be a Business and Technology Acumen

Product managers are experts in coupling technology and business models together. So, to do that, you need to master the craft of operating a business successfully. Your knowledge of technology will positively influence the end product, so make sure you know about blockchain really well.

Other than that, you should opt for learning the process of typical software development and how the software can influence the business. In most cases, you will have to ensure a good outcome from the products you roll out. So, make sure to keep a balance between the two elements. I would recommend dissecting case studies of reputable companies in order to learn about their business models. This will surely boost up your skills.

• Ability to Collaborate/Lead Design and Development Initiatives

Another one of the blockchain product manager skills is leading or collaborating with the design team. In reality, the process may vary from company to company. The design team may have its own leader; in that case, you need to collaborate with that team to come up with new development initiatives.

Make sure to keep an open mind and encourage the team members to do better. Also, help them realize what is more beneficial for the client and how you can achieve that. Insight on what consumers love at the moment will heavily influence the end results of the design process. But don’t overemphasize what the consumers want as most of the time, that isn’t feasible.

• Get Experience on Blockchain Product Development Process

Most of the time, enterprise companies want to hire an employee with a track record of working experience. So, if you can manage to gain experience in the blockchain product development process, it would be a huge plus point for your resume.

If you are just a beginner, it’s best to start off in a software company to go through each stage of the product development. Sometimes even having experience as an intern can help you in landing a good job. I would suggest you build up your resume before you aim for enterprise companies as you need to be highly qualified for that.

Curious to learn about blockchain implementation and strategy for managing your blockchain projects? Enroll Now in Blockchain Technology – Implementation And Strategy Course!

Soft Skills –

• Possess Strategic Skills to Solve Blockchain Product-based Problems Fast

This is one of the soft skills you need to master. In reality, in the development process of a product, anything can go wrong at any moment. So, as a blockchain product manager, it’s your responsibility to solve the issue as fast as possible. You never want to fall behind schedule as it also influences the marketing team. So, you need to hone your strategic thinking capability to perfection in order to offer a fast solution.

However, make sure to keep your solution error-free as even the slightest error can hinder product development. Anyhow, you can start by studying the core problems software firms usually face and then move to more unique issues. However, most of the time, you will face unique problems that need unique solutions.

• Have Cross-discipline Broad Skills

Cross-discipline broad skills are your strong points. So, make sure you hone them to perfection. A product manager should always have skills like analyzing capability, agility, innovative mind, out of the box thinking, DevOps, and so on. Usually, enterprise companies want to hire people who are versatile and vocal. As you will be the head of a team, you need to become a people person as well. So, being vocal and extroverted is an excellent quality to shine in an enterprise environment.

• Be A Professional Negotiator

You will have to work with various stakeholders and clients, along with team members who come with different views, tastes, and ideas. So, when you are the go-to person, you need to set priorities and successfully manage all crises and conflicts.

This is one of the significant blockchain product manager skills that you really need to be good at. But don’t even settle for the middle ground just for the sake of satisfying both parties. Always keep the product’s best interests in mind. In reality, this skill will help you in making the stakeholders agree with budgeting or resources that you may need for the product.

• Develop Unique Leadership Style

Yes, the leadership of a blockchain product manager is a bit different from other types of leadership. Here, you need to lead the ideation of the product. In reality, leading a product is very different from leading people. In order to do so, you have to show passion for your product and align all stakeholders with your ideation. More so, you need to demonstrate your strategy and have a clear vision of what your goal is. This will inspire your team members and how your commitment to the product and the company. All of these position vibes will make the people support the efforts you are putting into the project.

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Other Qualifications –

• Get a Degree in Computer Science Engineering

In most cases, blockchain product manager jobs ask for a degree in computer science engineering. As an educational qualification, it’s a good way to start your journey. More so, it shows you really know what you are doing and how much caliber you possess.

More so, the degree in the original field will help you understand the complex terms of blockchain easier, and you can quickly catch them in no time. You can also expect to start from a good position in a company with a higher salary if you have a degree to showcase.

• Sign Up for an Enterprise Blockchain Certification Program

As blockchain is a new type of technology, it’s not available in educational institutions. So, to learn about it, you will have to enroll in blockchain courses. This is a great way to show that you are capable of working with blockchain products.

I will recommend enrolling in a blockchain project manager course in order to learn about blockchain and your responsibilities. Most of the time, these courses will cover every element you may need for your career. So, it’s a good investment. If you can manage to get a blockchain product manager certification, you can surely expect a high-paying job position.

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Why Should You Go for Blockchain Product Manager Jobs?

• Increasing Demand

The demand for product managers is at an all-time high. Now that blockchain is finally going mainstem, many enterprise companies are eager to launch their own products. For example, take a look at IBM. They are launching a lot of blockchain-based products on the market and successfully creating a niche sector.

More so, there isn’t many qualified personnel to fully lead a product development life cycle successfully. So, the demand never gets low. Anyhow, if you can get a blockchain product manager certification to showcase, then you can confidently apply to any kind of company you want.

• High Paying Job

Blockchain product manager salary ranges from $46k-$100k per year. This is an excellent level of salary that can offer security for your future. I have to say, the range can also increase if you have good experience and work in a reputable company. Basically, the salary of a blockchain product manager will keep on rising as it’s directly linked to the demand spectrum. You will also be a tech product manager, so your value is always higher than other product managers. This is a good reason to get a career in this field.

• Opportunity for Innovation

With product management, you get the opportunity of innovation. In reality, you will work with many clients, and every time they will want something unique and different. Even the niche itself asks for unique product development every time because you can’t satisfy people with similar product features. So, if you like innovation or challenging yourself to do better, then this is the perfect field for you.

• More Flexibility in the Workplace

Another added benefit you will get from this job is the flexible nature of the responsibilities. Typically, the team can meet up anywhere, anytime, so there isn’t any fixed timeframe to work in the company. Again, you may have a busy lifestyle, but it will vary from product to product. Some products may need more work than others. Also, many companies offer entertainment rooms to keep you focused and happy with your work. This is a great opportunity for you.

• Work on The Technological Revolution

You get to work on an entirely new technology, which is revolutionizing how we see technology products. Can it get any better than this? So, you will be the one to reshape the business model in ways to help promote the product you will launch. With your management skills, you can explore various outcomes and discover new product lines suitable for consumers. So, you will get the experience of a lifetime.

• Intellectually Stimulating

This is one of the primary reasons why you should go for this job. Product management is a tough and challenging field, and it’s also intellectually stimulating for you. You get to test out your strengths and overcome your weaknesses and grow in your professional career.

More so, it’s one of the exciting job sectors at the moment, so it’s only normal for you to be excited about it. In reality, you really won’t have any limits and can work in various industries as you please.

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Concluding Thoughts

As a final thought, the blockchain product manager job is a good career choice to make at this moment. Blockchain is slowly taking over the business industries, and it will soon start to change how we see the economy as well.

Thus, it’s an opportunity for you to seize, and you can rise to the top quickly. If you are interested in learning about blockchain from a professional, you can check out our certified enterprise blockchains professional program.

The post How To Become A Blockchain Product Manager? appeared first on 101 Blockchains.

DeFi is using blockchain technology to ensure that our financial system is fully decentralized, distributed, and secured, unlike traditional means. In reality, it’s one of the fast-growing sectors in the crypto space.

Feeling intrigued? Let’s check out some of the popular decentralized finance applications on the market that you can try out today. So, let’s start!

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What Are Decentralized Finance Applications?

Before we start looking into DeFi applications, I’ll briefly explain the concept behind Decentralized Finance. DeFi is a peer-to-peer finance system or network that is powered by decentralized technologies. In simple terms, it’s actually the shift from a centralized and traditional financial system to a more decentralized and peer-to-peer network.

Decentralized finance companies are bringing an entire ecosystem full of applications starting from borrowing and lending platforms to tokenizing assets. So, in this case, decentralized finance applications are nothing more than blockchain or distributed applications developed specifically for the financial industries.

Also, most of these applications are using Ethereum as the underlying technology. In reality, our traditional financial system mainly runs on centralized infrastructure, which is highly flawed. On the other hand, decentralized finance applications get rid of the issues that come from the centralized infrastructure. So, it’s a great approach to digitizing this sector without any issues with the legacy systems.

Therefore, if you only have an internet connection, you can access all these Defi apps built to streamline all your financial needs. The breakthrough of DeFi is really changing the scenario of our financial systems. Now we can use crypto assets in so many ways that were never possible with real-world currencies. The paradigm shift in the economic infrastructure presents us with a lot of opportunities and gets rid of risks and trust issues.

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What Are Best Decentralized Finance Applications in The Market?

From synthetic assets to DAOs, decentralized finance companies are unlocking opportunities for a completely new economic model around the world. More so, the vesta mount of use cases of this sector is proof that this is more than just a bunch of DeFi projects.

It’s an integrated effort to develop a complete ecosystem of finance that shifts from traditional centralized services. Therefore, let’s look at the best-decentralized finance applications to understand what benefits you can expect from these.

So, let’s start!

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Asset Management

Decentralized finance applications will help you be the sole custodian of your information. Therefore, it includes managing your crypto asset as well. There are many crypto wallets that will help you securely and efficiently interact with applications for selling, buying, transferring, and earning interest on your assets.

So, in the DeFi projects space, you will own your data, not any third parties or any government agencies.

• MetaMask: MetaMask offers the security and usability needed for a getaway to blockchain applications. However, it’s also a wallet, and it can handle account management along with connecting any individual to the blockchain. More so, it even offers hardware wallets, which is totally isolated from the site.
• Gnosis Safe: Using this application, you can fully customize and manage all your crypto assets. It even allows you to store them on multiple devices. For example, it offers EOA-based wallets, hardware wallets, paper wallets, or even a combination of these three.

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Compliance and KYT

Basically, in the traditional finance companies, know-your-customer guidelines help counter-the-financing-of-terrorism (CFT) and promote anti-money laundering (AML). However, as the system is fragile, hackers can hack through the system and easily bypass all the security protocols.

Therefore, DeFi takes this system to a new height. Without focusing on customer identities, they are focusing on customer addresses. So, instead of know your customer, the applications focus on know-your-transactions (KYT). This helps to prevent risk in real-time and gets rid of any options for financial crimes.

• Codefi Compliance: This application offers KYT processes that help businesses to assess any risky behaviors from the very start. Therefore, it can offer CFT and AML checks to identify any fraudulent activities or even terrorisms.
• KYC-Chain: KYC-Chain is another application that offers you an array of features. You will get KYC and AML checks, identity and verification, crypto wallet AML, scalable and secure network, and access to the Selfkey network.

DAOs

DAO is actually a decentralized autonomous organization that focuses on decentralized and transparent business models. Basically, these types of organizations are based on blockchain technology and are incredibly different from traditional organizations.

Anyhow, there are applications that focus on managing financial operations, fundraising, and maintaining decentralized governance in DAOs.

• Maker: MKR holders actually governs the MakerDAO protocols. And this will include adjusting policy for Dai, improving governance, selecting different collateral types, offering security and transparency.
• Compound: Compound is also another application for DAO, where the decentralized community is the COMP token holders. More so, they can propose or even vote on upgrades related to the primary protocol.

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Data and Analytics

Decentralized finance applications come with unprecedented transparency for network activity and transactional data. That’s why using DeFi protocols can help you in data analysis, discovery, and profound decision-making opportunities. The explosive popularity of these applications is leading to the development of various dashboards and tools. In reality, some of them can even help you assess any platform risks, track the value of your assets, and compare them for the liquidity process.

• Codefi Data: Codefi Data is a suite for data management and analytics. You can use this solution in the investment ecosystem, such as public blockchain tokens, digital assets, decentralized finance protocols, and so on. Other than this, it also offers performance metrics and security.
• DeFi Pulse: It’s a DeFi live tracker. Here, you can find all the latest rankings of DeFi protocols and their analytics. Typically, they track the total value that is locked into the smart contacts of these applications.

Derivatives

Using Ethereum based smart contracts, DeFi is now introducing a new type of tokenized derivatives. Usually, these derivatives are directly linked to an underlying asset, and the performance shifts based on that asset.

More so, you can use DeFi derivatives to represent any real-world bonds, currencies, commodities, and even cryptocurrencies.

• bZx: It’s a margin lending protocol based on Ethereum blockchain. Furthermore, you can use this application to build other platforms that offer borrowing, lending, and trading facilities. So, even if you are a borrower or lender, you will be the one in control of the keys.
• dYdX: dYdX is a great application that will let you trade, borrow, lend, and even manage your assets directly. More so, you can use your crypto holdings as collateral for borrowing other assets. Tracking your performance and your assets is quite easy as well.

Infrastructure Development

Applications of decentralized finance offer composability. In reality, it means that it allows different components within a system to easily communicate, connect, and interoperate. Using this technique, communities are building upon what other developers have already built, making it one of the most prominent and powerful networks at this moment.

You can think of building DeFi applications like building with Legos. There are lots of tools dedicates specifically to the infrastructure development of blockchain platforms. More so, these are definitely some of the best tools that developers tend to love for their blockchain solutions.

• Truffle Suite: Truffle Suite is a combination of development tools that will let you create a new infrastructure from scratch. It contains three tools for compiling, testing, debugging, and deploying – Truffle, Ganache, and Drizzle.
• Infura: Using Infura, you can immediately connect your application to their APIs and use their support for interface to run your app. The best part is that you can do it with only 1 single URL. More so, they offer management services so that you can focus on project development.

Decentralized Exchange

Another popular use case of DeFi is the well-known decentralized exchange applications. Mainly these are cryptocurrency exchanges that don’t need any central authority. More so, it allows users to transact directly with other peers and ensure that the control remains only to the users. Thus, it helps to reduce any price manipulation, any kind of theft, or hacks.

Furthermore, these decentralized exchanges offer liquidity for certain projects, mainly when it comes to rival centralized exchanges.

More so, some exchanges may use decentralization to a certain extent without fully getting rid of the centralized servers.

• AirSwap: AirSwap is a great peer-to-peer trading decentralized finance application. In reality, it uses Ethereum as the underlying technology. More so, you won’t need any fees, deposits, or sign-ups to trade. It also offers a secure and easy to use interface that promotes liquidity of the assets.
• Uniswap Exchange: This is also based on Ethereum and offers automated liquidity protocol. The formula they use is quite unique, and they use non-upgradeable smart contracts for that. Therefore, you can access trusted intermediaries, great security, censor resistance, and prioritize decentralization using this.

Gaming

Decentralized finance applications are in the gaming world as well. More so, using these applications, gamers can now unlock the opportunity to handle their in-app purchases without any risks of credit card hacks. More so, these applications now offer unique incentive models, which is hard to come across in typical gaming experience.

This will surely enhance your gaming experience without worrying too much about your finances.

• PoolTogether: It’s an audited savings game where there is no-loss for you. Additionally, it uses Ethereum to make it completely decentralized. All you have to do is use Dai to get tickets from the pool. Every single Dai in the pool will get interest, so it’s a win-win situation for everyone.

Borrowing and Lending

Borrowing and lending use one of the most prominent use cases for the applications of decentralized finance. In reality, users can lend their cryptocurrencies to a lending pool and earn interests based on that. Based on their criteria, many applications match the borrower and lender, getting rid of any trust issues along the way.

• Aave: It’s an open-source protocol that creates different kinds of money markets. Here, you can earn interest based on your borrowing and depositing assets. More so, depositors are responsible for increasing the liquidity, and borrowers can borrow any asset in undercollateralized or overcollateralized fashion.
• Dharma: Dharma offers a suite of developer tools and smart contracts that helps in lending and borrowing crypto-assets. More so, the application offers access to 2000+ tokens, where you will need no Gas fees for trading. You can even withdraw anytime you want.

Identity Management

You can pair applications of decentralized finance with blockchain-based identity systems to give users access to a global economic platform. More so, this will help users get access to their own identity and use it as portable identification whenever they need it.

On top of this, you can expect high security for your financial information and your personal documentations because no third party can get access to it. You can even choose to share partial information to your clients without disclosing your personal data.

• Civic: Civic is a decentralized identity ecosystem. Here, you will have to verify your identity once, and then you can use it as much as you want. Furthermore, you can choose which company you trust to share your information. So, you don’t have to overshare anything else.
• uPort: At uPort, you will be getting a self-sovereign identity with just a few clicks. In reality, this tool will offer any individual to share their data in a secure, simple, and private way. It comes in two variations – the public and private sectors.

Insurance

DeFi is surely talking over the insurance industries as well. Due to the lack of proper management and security, this sector deals with contract breaches and false insurance claims. Also, the process of insurance claiming takes a lot of time. That’s why a number of innovative decentralized application in this spectrum is using blockchain to protect and cover contracts and help to streamline insurance claims faster.

• Etherisc: DIP Foundation supports the ecosystem, and it contains oracle providers, product builders, resellers, risk pool keepers, claim adjusters, underwriters, and relayers. Anyhow, it’s a great application for building risk transfer solutions solely for the insurance industry.
• Nexus Mutual: Nexus Mutual is a unique application that gets rid of the concept of insurance companies. Here, you can share the risk with other parties in a pool without needing any company to back it up. More so, they offer a backup solution for any disaster like faulty smart contracts or DAO hack.

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Margin Trading

In reality, margin traders can borrow funds from a lender and utilize their trades in a typical finance system. However, in DeFi, this trading is fully decentralized and offers non-custodial lending protocols. Due to the fact that smart contracts are connected to the majority of this type of application, many call them “autonomous money markets” at the moment.

• Fulcrum: Fulcrum is a decentralized finance application for tokenizing margin trading and lending processes. It doesn’t need any KYC and AML, and it offers non-custodial solutions. The automated renew and no rollover fees help to maintain a seamless experience.
• DDEX: DDEX offers instant borrowing, interest in lending from the start, and 5x leveraged trading. More so, all the smart contracts are audited and secured along with accessible mobile devices.

Stablecoins

Stablecoins fall under the spectrum of DeFi as well. Mainly these are cryptocurrencies, but they are pegged to any kind of stable asset. It can be fiat money, or gold, or even other cryptocurrencies. In reality, stablecoins are here to reduce the volatile nature of cryptocurrencies and make them a good source of digital currency. At present, many central bank digital currency (CBDC) protocols are using stablecoins.

• Dai: Dai is a stablecoin that is pegged against USD. Here, 1 Dai = 1 USD. The stablecoin uses Ethereum based platform, and MakerDAO is governance behind it. In reality, there is no discrimination when it comes to Dai as it offers stable pricing all the time.
• Gemini Dollar: Gemini Dollar is also pegged against the U.S. dollar. Here, it’s in a 1:1 ration to USD. More so, it offers high scalability and usability in any environment, getting rid of all volatile nature of traditional cryptos.

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Online Marketplaces

Online marketplaces are another great use case of DeFi. The applications of decentralized finance help users exchange products directly without any third party. More so, it also promotes globalization when it comes to online marketplaces. You can even do freelance gigs on these applications if you want to.

• Gitcoin: Gitcoin is a marketplace for your development work. It’s an open-source marketplace, which means all your development work here will be for the public. It offers workshops, a growing environment for your projects, and certain payouts to help you keep contributing.
• Ethlance: It’s a different take on the blockchain, which is kind of similar to popular platforms like Upwork, Fiverr, etc. But instead of getting paid in money, you will get paid in Ether. At the moment, they are not taking any cut from your payouts, so any money you are making from it is completely yours.

Payments

Well, the primary use case of the DeFi application starts off with a peer-to-peer payments system. That’s why most of the best decentralized finance applications offer this functionality to all the users. In reality, blockchain technology is more than enough to ensure a secure and direct connection to other users without needing any third-parties.

But DeFi payments takes it to a whole new level. It’s creating a more open space for safely sending and receiving payments around the globe.

• Request Network: It’s a payments network that uses IPFS and Ethereum. Anyhow, using this application, you can get access to standards, infrastructures for building your very own payments project.
• Groundhog: Groundhog is an awesome toolbox developed specifically for creating subscriptions that are crypto-based. In reality, adding Groundhog to your application is a simple task with only a few lines of code. More so, you can transfer money to this wallet using any crypto wallet or a bank account.

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Prediction Markets

There are many applications of decentralized finance solely built for prediction markets. In reality, these applications can easily analyze the data and consumer behaviors to successfully predict any changes.

In any case, market prices can indirectly indicate certain events. Thus, these applications analyze the situation and can offer you the results around the economic event, election results, and even sports games.

• Augur: Who doesn’t like prediction market apps? Augur is now one of the leading prediction market applications on the market with no limit to what you can bet on. It totally is up to you on how much you want to bet on.
• Gnosis: Gnosis is rather a platform that lets you develop prediction market solutions based on Ethereum. So, it’s more of a developer’s tool where they can get access to resources, information, and financial infrastructures.

Synthetic Assets

These are more or less related to stablecoins. In reality, these assets are a mixture of other assets such as fiat money, gold, or cryptocurrencies for offering a stable value. For example, a certain percentage or fiat money and gold can make up a synthetic asset.

Furthermore, this process helps to absorb any price shock that may happen later in the future. So, if the prices of gold fluctuated, the fiat money can back it up and make the end value stable.

• Synthetix: Synthetix is a unique application that offers a mixture of various assets for a stable value asset. At present, it’s the backbone of derivatives trading with synthetic assets. Anyhow, Synthetix Network Token backs up every single asset on the application.

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DeFi Applications Are Changing the Future of Our Economy

DeFi apps are slowly but surely changing the economic model of the world. Even a decade ago, imagining a completely decentralized finance system was impossible. However, blockchain technology is slowly paving the way for offering us the next technological revolution. Although these applications aren’t perfect, these are still managing to replace the error-prone legacy systems.

*Disclaimer: The article should not be taken as, and is not intended to provide any investment advice. Claims made in this article do not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!

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